It was one of only a few countries seeing positive growth. The Vietnamese government intends to do everything it can to restore the economy and increase growth in the remaining months of 2020.
As Vietnam pursues its dual goal of containing the epidemic and restoring the economy, experts predict that in the second half of this year the trade balance will remain steady and Vietnam will even see a trade surplus and breakthroughs in foreign investment. These are favorable conditions for Vietnam’s economy to grow.
Seizing opportunities to restore economic growth
Vietnam plans to continue flexible fiscal and monetary policies to stimulate consumer demand and economic growth, maintain macro-economic stability, control inflation, and ensure economic balance. They are the main factors in establishing investor trust and macro-economic stability.
Governor of the State Bank of Vietnam Le Minh Hung said, "The banking sector will provide sufficient, timely capital to the economy and manage forex stably. We will promptly intervene in the market whenever extreme fluctuations cause macro instability. If necessary, we will implement stronger monetary measures, including refunding projects in key economic areas to boost economic growth."
Vietnam will review the growth potential of all sectors and localities, said Minister of Planning and Investment Nguyen Chi Dung, adding that the industrial sector needs to participate in restoring the disrupted supply and value chains and create new value chains.
"We need to strengthen the domestic demand stimulus program and implement the tourism development support program as soon as possible, launch consumption stimulus programs, and expand the markets. We need to encourage domestic enterprises to take advantage of the free trade agreements that Vietnam has signed and sign more FTAs with major partners to strengthen national security and development", Dung noted.
Economic engines strengthened
During the last six months, Hanoi, HCM City, Da Nang, and Hai Phong have quickly overcome problems caused by the epidemic and created momentum for economic growth in the remaining months of the year.
Chairman of the Hanoi Municipal People’s Committee Nguyen Duc Chung said "Hanoi has worked out two scenarios for economic growth in the second half of the year, aiming to boost the gross regional domestic product growth rate to 1.3 times Vietnam’s average growth. Hanoi will cut regular expenses by another 5% and inaugurate several major projects. The city will set up 10 to 15 tax-free sites to sell other localities’ agricultural and fisheries products."
Chairman of the HCM City People’s Committee Nguyen Thanh Phong emphasised that the city is determined to achieve its development targets.
"We have asked the municipal People’s Council to revise investment stimulus programs, increase incentives for projects, and take advantage of the EU-Vietnam Free Trade Agreement (EVFTA) to increase exports of software. The city considers disbursement of public investment capital the key task and intends to disburse 80% of public capital by October", Phong stressed.
Vietnam has successfully contained the COVID-19 pandemic and restored the economy in the first half of this year. These are important prerequisites for achieving better socio-economic development results in the remaining months of the year.