Vietnamese economy remains resilient despite COVID-19 challenges

The nation’s economy is expected to record growth of 1.8% this year, despite the impact of the novel coronavirus (COVID-19) pandemic, before bouncing back to 6.3% in 2021, according to a new report released on September 15 by the Asian Development Bank (ADB).

“Lower domestic consumption and weak global demand caused by COVID-19 have hurt Vietnam’s economy more than expected. But economic growth will be resilient in 2020, in large part due to the Government’s success in controlling the spread of COVID-19,” said Andrew Jeffries, country director for Vietnam of the ADB.

“Economic growth will be supported by the country’s macroeconomic stability, increased public spending, and ongoing reforms to improve the business environment”, noted Jeffries.

According to the Asian Development Outlook (ADO) 2020 Update, an annual flagship economic publication released by the ADB, the Vietnamese economy will benefit from the continued persion of production from the People’s Republic of China to the nation, ongoing recovery in the Chinese economy, and the implementation of a free trade agreement with the EU.

The report outlines that slower-than-normal growth would serve to keep inflation subdued at 3.3% this year, before witnessing a slight rise to 3.5% in 2021.

The outlook for the country’s economy over the medium and long term remains positive, largely due to continued Vietnamese participation in a large number of bilateral and multilateral trade agreements which are expected to provide a boost for the nation’s economic during its rebound.

Furthermore, the report adds that it is likely the country will also be a beneficiary from the current shifting of supply chains to low-cost countries.

Through their report the ADB point out some of the potential risks that exist moving forward, with a prolonged global COVID-19 pandemic remaining the biggest danger to the nation’s growth outlook this year and into next year.

Moreover, another threat comes from escalating global trade tensions leading to a rise in trade protection, in addition to financial risks that could be exacerbated by the impact of a prolonged pandemic, the report says.

Source: VOV
vov.vn

Related News

Build advantages - Secure the future with Vietnam ESG 2024 Initiative

Build advantages - Secure the future with Vietnam ESG 2024 Initiative

VCN - In the context of global economic integration, Vietnamese businesses are facing many challenges in meeting strict requirements for green and sustainable development from investors, partners, international market and consumers. Faced with this trend, Vietnamese businesses, especially those participating in global supply chains or exports, are facing increasing pressure to apply ESG practices to avoid falling behind or being eliminated from the "game".
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

VCN - That was the direction of Deputy Minister of Finance Nguyen Duc Chi at a working session with leaders of the Provincial People's Committee and the Lang Son Departments of Finance, Tax, and Customs on March 19.
Prime Minister: State-owned enterprises continue to lead, pave the way, and pioneer in innovation

Prime Minister: State-owned enterprises continue to lead, pave the way, and pioneer in innovation

VCN - Appreciating the role of state-owned enterprises (SOEs), the Prime Minister requested to continue promoting their role of paving the way and leading; SOEs need to be a pioneering force, leading in innovation and economic restructuring...

Latest News

Gov’t determined to hasten ODA, concessional loan disbursement: Deputy PM

Gov’t determined to hasten ODA, concessional loan disbursement: Deputy PM

Deputy Prime Minister Tran Luu Quang on March 27 stressed the Vietnamese Government’s determination to speed up the disbursement of official development assistance (ODA) and concessional loans.
Vietnam, US hold first foreign ministerial-level dialogue

Vietnam, US hold first foreign ministerial-level dialogue

Minister of Foreign Affairs Bui Thanh Son and US Secretary of State Antony Blinken co-chaired the first Vietnam-US Dialogue at the foreign ministerial level in Washington DC on March 25 (local time).
Adaptive, fundamental, and synchronous solutions to improve the effectiveness of attracting FDI

Adaptive, fundamental, and synchronous solutions to improve the effectiveness of attracting FDI

VCN - Mr. Le Huu Quang Huy, Member of the Inter-Branch Executive Committee of Vietnam Industrial Park Finance Association (VIPF), Vice Chairman of the Board of Members of the International Investment Study Institute (ISC) had an interview with Customs Magazine reporters about the FDI attraction situation.
Vietnam attends 148th IPU Assembly in Geneva

Vietnam attends 148th IPU Assembly in Geneva

A delegation of the Vietnamese National Assembly (NA) led by NA Vice Chairman Tran Quang Phuong attended the opening ceremony of the 148th Assembly of the Inter-Parliamentary Union (IPU-148) and a plenary session in Geneva, Switzerland, on March 24.

More News

More Vietnamese people go cashless: Visa study

More Vietnamese people go cashless: Visa study

Visa, a global leader in digital payments, has provided its insights into Vietnam’s payment landscape with its latest Consumer Payment Attitudes study that highlights the surge in cashless transactions among Vietnamese consumers.
Without resolving three significant bottlenecks, real estate market

Without resolving three significant bottlenecks, real estate market's revival will face numerous challenges

VCN - Economic expert Vu Dinh Anh shares insights on the real estate market's recovery trajectory in 2024.
Top Finnish legislator begins official visit to Việt Nam

Top Finnish legislator begins official visit to Việt Nam

Speaker of the Parliament of Finland Jussi Halla-aho and a high-ranking delegation of the Finnish Parliament arrived in Hà Nội on Sunday
Nearly 20 commercial banks lower deposit rates

Nearly 20 commercial banks lower deposit rates

Nearly 20 commercial banks in Vietnam have adjusted deposit rates since the beginning of this month, with most lowering rates.
Breakthrough policies look towards green economy

Breakthrough policies look towards green economy

Extended producer responsibility (EPR) holds producers and importers responsible for the entire lifecycle of their products, including their disposal and recycling.
Vietnam remains attractive destination for foreign investors

Vietnam remains attractive destination for foreign investors

Vietnam's economic strength is reflected in controlled macroeconomic indicators and the country has increasingly affirmed and strengthened its important role in the supply chain diversification strategy of multinational corporations. 2024 will be the year for foreign investors to seize opportunities and implement high-tech foreign direct investment (FDI) projects in Vietnam.
Bright spots at the beginning of the year

Bright spots at the beginning of the year

VCN - Production and business activities of enterprises have been vibrant since the first days of the year, thanks to which, many economic indicators in the first 2 months of 2024 are positive and positive. This is the fulcrum of trust and motivation for businesses to continue to develop.
Vietnam pledges to continue contributing to UNESCO’s common affairs

Vietnam pledges to continue contributing to UNESCO’s common affairs

Deputy Minister of Foreign Affairs Ha Kim Ngoc attended the 219th session of the UNESCO’s Executive Board in Paris on March 18 and 19, during which the Vietnamese representative affirmed that Vietnam always highly evaluates multilateral cooperation and UNESCO’s role, and pledges to continue to make active and positive contributions to the organisation’s common affairs.
Vice State President now Acting President

Vice State President now Acting President

Mme. Vo Thi Anh Xuan, Vice State President, assumes the position of Acting President of the Socialist Republic of Vietnam from March 21, 2024, until the National Assembly elects a new President, an announcement of the National Assembly (NA)’s Standing Committee read.
Read More

Your care

Latest Most read
Gov’t determined to hasten ODA, concessional loan disbursement: Deputy PM

Gov’t determined to hasten ODA, concessional loan disbursement: Deputy PM

Deputy Prime Minister Tran Luu Quang on March 27 stressed the Vietnamese Government’s determination to speed up the disbursement of official development assistance (ODA) and concessional loans.
Vietnam, US hold first foreign ministerial-level dialogue

Vietnam, US hold first foreign ministerial-level dialogue

Minister of Foreign Affairs Bui Thanh Son and US Secretary of State Antony Blinken co-chaired the first Vietnam-US Dialogue at the foreign ministerial level in Washington DC on March 25 (local time).
Adaptive, fundamental, and synchronous solutions to improve the effectiveness of attracting FDI

Adaptive, fundamental, and synchronous solutions to improve the effectiveness of attracting FDI

VCN - According to data from the Foreign Investment Bureau (Ministry of Planning and Investment), accumulated to now, Vietnam has attracted 39,553 FDI projects with a total registered capital of US$ 473.1 billion, the total implemented capital of the FDI
Vietnam attends 148th IPU Assembly in Geneva

Vietnam attends 148th IPU Assembly in Geneva

A delegation of the Vietnamese National Assembly (NA) led by NA Vice Chairman Tran Quang Phuong attended the opening ceremony of the 148th Assembly of the Inter-Parliamentary Union (IPU-148) and a plenary session in Geneva, Switzerland, on March 24.
More Vietnamese people go cashless: Visa study

More Vietnamese people go cashless: Visa study

Visa, a global leader in digital payments, has provided its insights into Vietnam’s payment landscape with its latest Consumer Payment Attitudes study that highlights the surge in cashless transactions among Vietnamese consumers.
Mobile Version