The biggest risk of growth is still from the pandemic

VCN - The fourth wave of the pandemic in Vietnam has had a significant impact on Vietnam's economic growth goals. A reporter from Customs News spoke with Dr. Le Duy Binh, Director of Economica Vietnam on this issue.
How is credit flowing into risky areas? How is credit flowing into risky areas?
Interest will be adjusted based on the market and each bank Interest will be adjusted based on the market and each bank
Export of livestock products grew impressively Export of livestock products grew impressively
The biggest risk of growth is still from the pandemic

Dr. Le Duy Binh, Director of Economica Vietnam

The report of the General Statistics Department on the socio-economic situation in the first five months of the year shows that the economic growth rate of Vietnam has been maintained at a good growth rate, with quite positive indicators.How has the return of the fourth wave of the Covid-19 pandemic in Vietnam affected Vietnam's economic growth in the first months of 2021?

However, in the second quarter, the impact of the Covid-19 pandemic returned, slowing down the economic growth rate that we had partly recovered in the first quarter.

Notably, the outbreak directly affects the production capacity of Vietnam when it spreads to some industrial zones and major economic centers. Although the pandemic is under control in these areas, the risk of a re-outbreak is still present at any time.

In your opinion, will the pandemic narrow the room for economic growth in the context of this fourth outbreak that is much more complicated than previous ones?

- It can be seen clearly that when the disease spreads, it will narrow the development space, not only for factories and workshops of enterprises inside and outside the export processing zones and industrial zones, but also with individual household businesses and the informal economic sector.

The pandemic also affects the speed of implementing business ideas of private enterprises, implementing FDI projects, disbursing public investment capital and the recovery of service sectors.

Achieving the goal of economic development depends on the ability of pandemic control and the effectiveness of disease control, it also partly depends on the resources obtained from the results of the economic development process. Thus, the implementation of dual goals is reciprocal and complementary.

The Government has implemented many support policies on taxes and fees for enterprises, which support policies ensure economic growth in a sustainable and stable manner?

- It is true that the support policies for enterprises are only short-term, and not radical and long-term.

For the sustainable development of the economy, first of all, it is necessary to improve the competitiveness of enterprises as well as the resilience of enterprises so that they will have a stronger and more durable resistance in any situation.

Support measures are needed to improve competitiveness, so that enterprises can access the global market with a higher position in the global value chain. Vietnam's export goods will have higher added value, with higher content of knowledge, gray matter and technology.

To do that, the Government needs to continue to vigorously implement long-term measures such as institutional reform, improving the investment environment, promoting fair competition, cutting administrative procedures and legal compliance costs, creating a favorable and safe business environment, and encouraging innovation and creativity.

What do you think about the growth motivation from public investment and attracting FDI?

- Public investment remains a significant motivation for economic growth this year. However, the total capital for public investment in 2021 has decreased compared to 2020, which is the first year that Vietnam was affected by the outbreak of the Covid-19 pandemic.

In the context of declining public investment capital, the disbursement rate for development investment in the first five months of 2021 is just over 22.12% compared to the estimate, lower than the 25.98% in the same period of 2020.

Thus, this year, despite favorable conditions in the first quarters of the year, the disbursement speed is lower, which will affect the contribution of the driving force called public investment capital to economic development. The Ministry of Finance plays an important role in promoting the disbursement of public investment capital, but it is necessary to have stronger and more drastic participation of ministries, branches, localities and investors of public investment projects.

Public investment should play a supporting and guiding role in attracting and implementing FDI and private investment. In fact, the increase in FDI and private capital into the economy is partly due to the improvement of infrastructure, telecommunications network, utility works from public investment capital in recent years, even during the period when Vietnam was affected by the pandemic.

In the current context, public investment can play a more important role if it is used as a catalyst to stimulate private investment and attract foreign investment.

The Covid-19 pandemic also shows that public investment is also important to upgrade the capacity of health systems, research & development in medicine, health care, and disease control. Public investment in these areas will clearly not only bring immediate benefits in terms of people's welfare, but also have a direct impact on ensuring Vietnam's sustainable economic growth and prosperity in the long-term.

Thank you, Sir!

By Xuan Thao (recording)/ Binh Minh

Related News

A lot of room for growth in the potential for Vietnam - Rok financial cooperation

A lot of room for growth in the potential for Vietnam - Rok financial cooperation

VCN - During the business trip program to the Republic of Korea (RoK), the delegation of the Ministry of Finance led by Minister Ho Duc Phoc had a working session with the RoK’s Deputy Prime Minister and Minister of Economy and Finance on March 8, at the Government Complex Seoul.
Seafood exports are expected to recover in 2024

Seafood exports are expected to recover in 2024

VCN - Vietnam's seafood exports have shown good signs right from the first month of 2024. In particular, exports of two main seafood products, shrimp and pangasius, will recover after a sharp decline in 2023.
Seafood exports surge in several markets

Seafood exports surge in several markets

VCN - In January 2024, seafood exports to several primary markets experienced remarkable growth, with one market seeing a threefold increase.

Latest News

Import turnover of 19 commodity groups grows over 20%

Import turnover of 19 commodity groups grows over 20%

VCN – Most of major import commodity groups have high growth turnover compared to the same period in 2023.
Vietnam owns significant advantages in attracting FDI

Vietnam owns significant advantages in attracting FDI

VCN - In an interview with Customs News, Dr. Vo Tri Thanh, Director of the Institute of Branding and Competition Strategy, believed that the global minimum tax could affect global foreign direct investment (FDI) flows and the FDI attraction policies of each country. However, "in crisis lies opportunity", Vietnam still has significant advantages in attracting FDI.
Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

VCN - ASEAN member states and the Republic of Korea (RoK) reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Vietnam needs to cook up stronger global rice brand

Vietnam needs to cook up stronger global rice brand

Although Vietnamese rice has a foothold in several fastidious markets, there is a long way to go to make it a stronger brand globally, according to insiders.

More News

Vietnam advised to fully tap CPTPP to boost exports to Canada

Vietnam advised to fully tap CPTPP to boost exports to Canada

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has opened up numerous opportunities for Vietnam and Canada to boost two-way trade, however, tax initiatives under the trade pact have not been tapped to the fullest extent by the Vietnamese exporters, said Vietnamese Trade Counsellor in Canada Tran Thu Quynh.
ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

VCN - In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year. Ms. Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP) shared with Customs Magazine.
Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Singapore is the largest foreign investor in VN in Q1

Singapore is the largest foreign investor in VN in Q1

The disbursed FDI rose by 7.1 per cent in the first quarter to reach $4.63 billion, a signal that the disbursement will continue the positive trend, the agency said.
Thai Binh boosts investment, trade cooperation with Germany

Thai Binh boosts investment, trade cooperation with Germany

A delegation from the northern province of Thai Binh, led by Deputy Secretary of the provincial Party Committee Nguyen Khac Than, visited several localities and business organisations in Germany from March 25 to 27, in a bid to enhance trade cooperation with and attract direct investment from the European nation.
Lifting obstacles to develop industrial parks

Lifting obstacles to develop industrial parks

VCN - Attracting investment and developing industrial zones (IZs) and economic zones (EZs) is one of the important contents to implement the policy of developing a multi-component, open, attract investment and resources from all economic sectors to develop the country. In addition to the results achieved, there still limitations that need to be removed to draw investments to develop industrial parks and economic zones, including financial problems for industrial parks.
Read More

Your care

Latest Most read
Import turnover of 19 commodity groups grows over 20%

Import turnover of 19 commodity groups grows over 20%

VCN - According to the General Department of Vietnam Customs, in the first two months of 2024, the total import turnover of the country increased by 17.1% year-on-year to US$ 54.21 billion. The result is only lower than the record increase of the same per
Vietnam owns significant advantages in attracting FDI

Vietnam owns significant advantages in attracting FDI

VCN - Vietnam's economy has passed the most dangerous and difficult period and is now more stable. Inflation, exchange rates, and interest rates have decreased, bank liquidity has stabilized, and the stock and bond markets have experienced shocks and begu
Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

ASEAN member states and the Republic of Korea (RoK) reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules
Vietnam needs to cook up stronger global rice brand

Vietnam needs to cook up stronger global rice brand

Although Vietnamese rice has a foothold in several fastidious markets, there is a long way to go to make it a stronger brand globally, according to insiders.
Vietnam advised to fully tap CPTPP to boost exports to Canada

Vietnam advised to fully tap CPTPP to boost exports to Canada

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has opened up numerous opportunities for Vietnam and Canada to boost two-way trade, however, tax initiatives under the trade pact have not been tapped to the fullest extent by the Vietnamese exporters, said Vietnamese Trade Counsellor in Canada Tran Thu Quynh.
Mobile Version