Bright spots in Vietnam’s economy

(VOVWORLD) - Vietnam is one of very few countries who have achieved economic growth while successfully controlling the COVID-19 pandemic. Foreign media are praising Vietnam’s tough pandemic control measures and calling Vietnam a model of economic growth and social stability in 2021.
Bright spots in Vietnam’s economy - ảnh 1A slogan of doctors during the social distancing for COVID-19 prevention

Although Vietnam did not reach its GDP target for 2020 or its 5-year average growth from 2016 to 2020 target, it still recorded one of the world’s highest growth rates last year.

Positive assessments of Vietnam’s economic prospects

Last year Vietnam’s export revenues were an estimated 544 billion USD, up more than 5%. Nguyen Viet Phong, Director of the Trade and Services Statistics Department of the General Statistics Office, said: “This is the 5th consecutive year Vietnam has recorded a trade export surplus. This has impacted foreign exchange rates and is a driving force for Vietnam in the coming years.”

Foreign media are praising Vietnam’s successful control of the coronavirus pandemic. The Nikkei, Japan’s newspaper, said Vietnam is one of three economies in Southeast Asia that are poised to recover to their pre-pandemic level. The New York Times ran an article entitled “Is Vietnam the next ‘Asian miracle’?”, which said that within days of China announcing its first case of Covid-19, Vietnam was mobilizing to stop the spread of the coronavirus. Containing the pandemic allowed Vietnam to quickly reopen businesses. The article said that, even more impressively, its growth is driven by a record trade surplus, despite the collapse in global trade. With appropriate and effective pandemic preventive measures, Vietnam can maintain its 2020 growth rate and make a breakthrough in 2021.

Many economists say the free trade agreements Vietnam has signed will help it attract investment and expand trade.

The World Bank, the Asian Development Bank, and the International Monetary Fund have estimated Vietnam’s GDP in 2021 to be 6.5% to 6.8%. They predict that Vietnam’s economy will grow rapidly and possibly become one of the world’s top economies.

OUB Bank of Singapore estimates that Vietnam’s economy will grow 7.1% this year and HSBC of Hong Kong, China, estimates it will grow 8.1%. S&P Global says it might grow 10.9% this year, which would be faster than any other economy in the Asia-Pacific.

The Center for Economics and Business Research based in the UK said in its annual report on 193 countries that Vietnam’s economy will grow 7% a year between 2021 and 2025. In the next decade Vietnam’s annual economic growth rate could be 6.6% and at that rate, by 2035 it will rank 19th in the world.

Vietnam – a lucrative partner

Because of its economic stability, solid growth, and global integration through free trade agreements, Vietnam has become an important partner of many countries. Ben Bland, Research Fellow and Director of the Southeast Asia Project of Australia, said that Vietnam is achieving rapid growth and its growth strategy takes into account various factors. In Southeast Asia, Vietnam is a key partner for Australia as it plays a strategic balancing role in the region. 

Vietnam’s biggest success has been controlling the pandemic. It is also distinguishing itself as a leader in implementing international commitments and in government investment in digital transformation.