Hanoi (VNA) – Vietnam has fulfilled a numberof economic targets this year despite impacts of the COVID-19 pandemic,becoming one of the top 20 economies in the world in terms of international trade.

The country’s GDP grew 2 percent, while its foreign trade value surpassed 660 billion USD, up 21 percent, with a tradesurplus of about 2.1 billion USD. Notably, foreign direct investment (FDI)poured into the country hit over 29 billion USD, up nearly 500 million USD fromlast year.

These achievements are attributable to efforts by theentire political system, the business community and people, along with theGovernment’s flexible decisions and policies.

Vietnam has shifted its strategy from “zero COVID-19”to safely and flexibly adapting to and effectively controlling the pandemic, helpingto maintain economic activities.

Such policies and strategies have consolidatedpublic confidence in the Government, and encouraged them to join hands inpandemic containment and economic development.

The fourth wave of pandemic outbreaks, which beganlate April, has prompted prolonged social distancing in a number of cities andprovinces which are industrial hubs and top contributors to the State budget like Ho Chi Minh City, Hanoi, Da Nang, Can Tho, Bac Ninh, Bac Giang, Binh Duongand Dong Nai, resulting in sluggish production, disrupted supply chains and adecrease in the purchasing power.  

Up to 1.8 million labourers lost their jobs or part of their incomes inthe third quarter of this year, up 700,000 from the previous quarter, and thecountry’s economy contracted 6.17 percent – the sharpest drop since Vietnambegan calculating and announcing its quarterly GDP. As a result, in the first nine months ofthis year, the national GDP was up only 1.42 percent.

However, the country’s socio-economic developmenthas bounced back since October, as informed by Prime Minister Pham Minh Chinhat the Country Strategy Dialogue on Vietnam 2021 held at the end of the month.

During the January-October period, newly-registeredFDI into Vietnam rose 11.6 percent and export went up 16.6 percentyear-on-year. The country’s consumer price index (CPI) in the 10 months inchedup only 1.81 percent.

PM Chinh said difficulties facing Vietnam aretemporary, stressing the country’s potential, advantages and new driving forcesfor long-term development and macro foundation, with stable, solid majoreconomic balances.

For a firm macro foundation, the country hasissued unprecedented incentives for people and businesses affected byCOVID-19, and made timely adjustments to policies.

Each locality has also adopted their own ways inimplementing policies and guidelines of the Government to achieve the dualgoals of pandemic combat and economic development.

The northern province of Quang Ninh is an example,which has fought the pandemic early and from afar in line with resolutions ofthe National Assembly, and instructions of the Government.

As a result, Quang Ninh is among very few localitiesthat have posted the highest growth rate nationwide, reaching double-digitgrowth.

With the timely, flexible policies, Vietnam is expectedto see a GDP growth of over 2 percent this year, and the agricultural sector would expand 2.8percent, continuing to be a pillar of the national economy.

Given the emergence of the Omicron variant thatwould greatly threaten the economy of Vietnam and the world, experts suggestedthat Vietnam should kick off its economic recovery programme early, and deal withlimitations of the previous support packages in order to reach the economic growthtarget of 6-6.5 percent in 2022 as set by the legislature.

The NA is scheduled to convene an extraordinary meetinglate December to discuss major matters, including those regarding fiscal andmonetary policies mentioned in the economic recovery and development submittedby the Government.

ADB Country Director in Vietnam Andrew Jeffries saidthe recovery of Vietnam’s major partners, plus increased vaccination in thecountry would help to boost trade and facilitate economic reopening of thecountry.

Deputy Minister of Planning and Investment Tran QuocPhuong pointed out the five groups of solutions in the economic recovery anddevelopment programme for the 2022-2023 period, covering the COVID-19 combat andmedical work, social welfare, business support, public investment promotion andmanagement, ensuring macro balances, and controlling inflation and risks.

Many experts shared the view that if the programmeis rolled out well, the economy would expand by 1 - 1.5 percentage points./.