Solutions on strict pandemic control to ensure economic growth

06:00 | 27/09/2021 Economy

(VEN) - Deputy Minister of Planning and Investment Tran Quoc Phuong said the Vietnamese economy is facing many difficulties due to the complicated developments of the Covid-19 pandemic. The Ministry of Planning and Investment has proposed four solutions to promote economic growth in the final months of the year, with the highest priority given to pandemic prevention and control.

solutions on strict pandemic control to ensure economic growth
Mass Covid-19 testing to identify infection

Macro-economy remains stable

According to Deputy Minister of Planning and Investment Tran Quoc Phuong, the pandemic remained complicated and unpredictable throughout August, especially in Ho Chi Minh City and southern provinces, affecting the overall growth of the economy. However, the macro-economy was stable and inflation was kept low, while foreign direct investment (FDI) maintained a positive trend.

A socioeconomic situation report in August and the first eight months of the year compiled by the General Statistics Office of Vietnam shows that the consumer price index (CPI) in the first eight months of 2021 increased by 1.79 percent compared to a year ago, the lowest increase for the same period since 2016. Nguyen Thi Huong, director-general of the General Statistics Office of Vietnam, said that with the CPI growth pace, Vietnam will keep inflation under the four-percent target for the whole year.

FDI pledges to Vietnam in the first eight months of 2021 reached US$19.12 billion, a drop of 2.1 percent compared to a year ago. Of the figure, total registered capital increased by 16.3 percent to US$11.33 billion, while adjusted capital was up 2.3 percent to US$5 billion. FDI disbursement reached US$11.58 billion, a year-on-year increase of two percent.

Nguyen Van Toan, deputy chairman of the Vietnam’s Association of Foreign Invested Enterprises, said FDI pledges to Vietnam are relatively positive given the strong decline in global investment, demonstrating Vietnam’s attractiveness to international investors.

solutions on strict pandemic control to ensure economic growth
Vietnam needs to provide more support for businesses

Four solutions

The Vietnamese economy is facing many difficulties in the final months of the year. The resurgence of Covid-19 has affected all aspects of the economy, disrupting production, circulation and transportation of goods and reducing domestic purchasing power.

Although the global economy is recovering, it remains slow, uneven and unstable. Many major economies are heavily affected by the resurgence of Covid-19 with disrupted supply chains, insufficient raw materials for production, and weak financial health. In Vietnam, the implementation of pandemic prevention and control measures remains inconsistent and asynchronous, while instructions have posed difficulties for businesses.

The Ministry of Planning and Investment has proposed four solutions for economic growth. These include drastic pandemic prevention and control, consistent implementation of socioeconomic development goals, and greater coordination in policy implementation and enhancement of forecasting and warning. Finally, the country needs to adopt mechanisms and policies to encourage initiatives and promptly handle collectives and individuals violating pandemic prevention and control measures.

To stabilize the macro-economy and achieve the highest growth, pandemic prevention and control must be a top priority. Ministries, departments and localities should not be negligent and subjective, and they must see pandemic prevention and control as a prerequisite to stabilize people’s lives and recover the economy.

Effective Covid-19 prevention and control measures will help Vietnam maintain macroeconomic stability and ensure economic balance.

Nguyen Hoa