Vietnam still sees optimistic economic outlook in 2022: scholar

Vietnam's economy has slowed down due to the prolonged impact of the COVID-19 pandemic, but there are still many optimistic forecasts about the country’s economic outlook in 2022, Dr Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM) said.

Minh called attention to a number of factors that will affect the Vietnamese economy in 2022, including the capacity to control the pandemic, the capacity to ensure production recovery, and the capacity to keep pace with the implementation of an extensive programme on economic recovery and development until 2023.

This programme not only helps remove difficulties and creates motivation in the short term, but also ensures macroeconomic stability and lays the foundation for stronger economic institutional reforms in the next 3-5 years, she added.

However, in order to achieve firm economic recovery in 2022, Minh stressed the need to continue giving priority to effectively preventing and controlling the COVID-19 pandemic, along with speeding up the vaccination process.

She proposed building and implementing early a master programme on economic recovery and development during and after the pandemic in three phases as specified in research outcomes announced by the CIEM earlier this year.

Accordingly, the first phase will last until the first quarter of 2022, during which priority will be given to pandemic prevention and control in combination with macro-economic policies to help businesses survive the difficult situation.

The second phase will last through 2023, during which macroeconomic policies should be relaxed to stimulate demand for the economy and create momentum for businesses.

In the third phase in the years after 2023, macroeconomic policies will be normalised, the macroeconomic foundation strengthened and more intensive economic institutional reform promoted.

Minh also emphasized the importance of applying flexible macroeconomic policies in line with scenarios to cope with adverse developments of the world and regional economies; diversifying exports; and speeding up the implementation of support packages for people and businesses.