Vietnam pushes back pandemic, plans boost to economic development

06:00 | 10/11/2021 Economy

(VEN) - Prime Minister Pham Minh Chinh has presented the National Assembly with a report on the implementation of the 2021 socioeconomic development plan and a draft plan for 2022, which calls for gross domestic product (GDP) growth rate of 6-6.5 percent and four-percent limits on inflation and budget overspending.

vietnam pushes back pandemic plans boost to economic development

Eight targets

PM Chinh said that despite the complicated developments of the Covid-19 pandemic, the Vietnamese economy has achieved encouraging results and is expected to complete and even exceed eight among 12 key targets set for the year.

In the first nine months of the year, macroeconomic stability was maintained and inflation was kept low. The consumer price index (CPI) increased by 1.82 percent compared to the same period last year. The major balances of the economy were also stable. By the end of September, credit growth reached 7.84 percent compared to the end of 2020.

In 2021, total export-import turnover is expected to reach US$628 billion. The total annual amount of electricity produced and imported is expected to reach 266.3 billion kWh, a year-on-year increase of 7.8 percent, while commercial electricity output is expected to reach 232.3 billion kWh, an increase of 6.6 percent compared to a year ago.

vietnam pushes back pandemic plans boost to economic development
Prime Minister Pham Minh Chinh presents a report on the implementation of the 2021 socioeconomic development plan and a draft plan for 2022

GDP growth of 6-6.5 percent in 2022

In a draft socioeconomic development plan for 2022, the government aims at GDP growth of about 6-6.5 percent, CPI expansion of around four percent and the state budget overspending equivalent to four percent of the country’s GDP.

To realize the goals, the government will focus on implementing an overall strategy on pandemic prevention and control, with a roadmap for safe and flexible adaptation and effective control of Covid-19, while accelerating mass vaccinations.

The government will focus on effectively implementing a socioeconomic recovery and development program; ensuring flexible adjustment and close coordination between fiscal, monetary and other policies to maintain macroeconomic stability, control inflation, and stabilize major balances; restoring trade and production activities; promoting exports and domestic consumption; boosting investment; and adopting mechanisms and policies to mobilize more resources for socioeconomic recovery and development. The government will also prioritize the completion of institutions, cut red tape, improve the business and investment environment and facilitate digital transformation.

The government will carry out economic restructuring in association with transforming the growth model towards sustainability, improve productivity, quality, efficiency and competitiveness, develop the digital economy and society, promote public investment disbursement, encourage enterprises to invest in scientific and technological research and development and join the global value chain. Developing synchronous and modern infrastructure and adapting to climate change are also underlined.

Prime Minister Pham Minh Chinh said the goals of 2022 are safe and flexible adaptation and effective control of Covid-19 and protection of people’s health and life, while tapping every opportunity to promote socioeconomic recovery and development.

Quynh Nga & Lan Anh