VOV.VN - A workshop running with the theme of ''Assessment of Vietnam's economic recovery and policy implication in the new normal" was held on April 27 in Hanoi with the presence of leading Vietnamese economic experts.
The event was co-hosted by Konrad-Adenauer-Stiftung (KAS) Vietnam and the Vietnam Institute for Economic and Policy Research (VEPR).
The event saw the release of an economic report compiled by VERP, with it detailing that 2021 was a difficult year for the Vietnamese economy as the nation remained in a prolonged state of shutdown due to the COVID-19 pandemic. However, the strong implementation of the "fast-paced" vaccination campaign contributed to the country quickly improving the situation.
In the first quarter of the year, imports and exports enjoyed a strong rebounded with total trade turnover of goods reaching US$176.35 billion, up 14.4% against the same period from last year.
Most notably, GDP growth rate during the first quarter of the year stood at 5.03% compared to 4.72% in the first quarter of last year and 3.68% in the first quarter of 2020.
Furthermore, the processing and manufacturing industry played a leading role in relation to economic growth, continuing to prosper with a growth rate of 7.79%.
Elsewhere, FDI into the nation continues to be a bright spot in the region despite existing risks globally with the three-month FDI figure reaching US$4.42 billion, a year-on-year rise of 7.8%.
Moreover, the number of businesses resuming operation increased sharply, especially in the service sector which was previously hardest hit by the impact of the pandemic.
Experts used to function to point out that the policy of opening up the economy, especially the full opening from March 15, is an essential condition for future economic recovery.
Along with the Economic Recovery Program, the country’s stimulus packages are primarily aimed at supporting growth recovery, with these expected to "nudge" economic growth moving forward.
Moving forward, it is anticipated that exports and foreign direct investment will continue to be the driving force for economic growth this year.
However, think tanks also outlined several major risks and obstacles to the economic growth recovery, including the possible emergence of new strains of the COVID-19 pandemic, as well as China’s "Zero COVID" campaign, which will exert pressure on the Chinese economy, possibly slowing down Vietnamese export growth and economic recovery.
There will be added risks of inflationary pressure and production costs due to the ongoing Russia-Ukraine conflict coupled with inefficiencies in the implementation of economic stimulus policies.
Economists noted that fiscal policies are designed to play a key role in the economic recovery programme, adding that the public investment package represents an important component of the Economic Recovery Program.
The VAT reduction policy and 2% interest rate support policy are also expected to reduce inflationary pressure, stimulate greater consumer demand, and assist enterprises in increasing production and business activities.
They underlined the necessity of improving the business climate, enhancing competitiveness, and revitalising sustainable economic growth, as well as accelerating administrative reforms.
Experts therefore recommended that the Government cut the special consumption tax on gasoline prices, keep supply sources under control, as well as supply chains and fuel for production to reduce inflation pressure and minimise business risks.
Participants at the event added that timely support is needed to help enterprises exploit imported materials sources, remove logistical obstacles, reduce congestion at border gates, while simultaneously developing supportive institutions and policies in a bid to promote investment linkages among economic sectors, domestic and foreign-invested enterprises (FDI).
They emphazised the need to deploy faster measures to realise economic stimulus and social security packages, as well as reforming institutions and finalizing policies to support growth recovery in the private sector.