Efforts exerted to achieve Vietnam’s GDP growth target in 2020

(VOVWORLD) - At the government’s regular meeting for September, Prime Minister Nguyen Xuan Phuc urged faster economic recovery in order achieve a GDP growth rate of 2.5 to 3% this year. The Prime Minister said many foreign and Vietnamese survey organizations have made similar forecasts. With COVID-19 under control, Vietnam’s economy is recovering quickly.
Efforts exerted to achieve Vietnam’s GDP growth target in 2020 - ảnh 1The government convenes its regular meeting for September 

Solutions to restore and boost the economy in the last quarter of this year have been implemented focusing on boosting credit growth, accelerating disbursement of public investment, and helping businesses boost their production and take advantage of the EU-Vietnam Free Trade Agreement.

Flexible policies to help businesses

In the second quarter, credit increased 4.2 to 4.3% from last year. In September alone, it increased 1.8%. a sign of  liquidity in agriculture, production and services. Despite difficulties caused by the current epidemic, businesses have recovered aided by deferred and restructured loans.

With COVID-19 under control and strong support for production and exports, credit is expected to grow 9% this year.

Deputy Governor of the State Bank of Vietnam Dao Minh Tu said: "We have implemented coordinated measures and restructured debts. Since the beginning of this year, the State Bank of Vietnam has three times reduced loan interests rates by a total of 1.5 to 2% enabling commercial banks and credit organizations to provide low interest loans to businesses. The lowering of interest rates expands credits. In addition, the government has implemented several financial and tax incentives to help businesses."

Businesses have also gotten strong support from Ministries and sectors, particularly the Ministry of Industry and Trade to increase their exports. Deputy Minister of Trade and Industry Do Thang Hai said: "We will help businesses seize opportunities created by FDI projects and Free Trade Agreements to expand their markets and penetrate new markets. We will disseminate information to guide export activities. Due to COVID-19, businesses cannot go overseas. Up-to-date information will help them increase their online transactions. We will continue to accelerate administrative reforms to remove barriers for Vietnamese businesses."

Foreign investment attraction

Vietnam is working to attract foreign investment as the COVID-19 epidemic causes the world to shift investment, factories and businesses. Deputy Minister of Planning and Investment Tran Quoc Phuong said Vietnam is now internationally recognized as an attractive destination for foreign investment thanks to its stable politics and macro economy, its strategic location, and its favorable business environment and human resources. 

"We organized an online investment promotion meeting with partners from Japan, Singapore, and France. Investors expressed keen interest in Vietnam’s foreign investment attraction policies which are reflected in the Politburo resolution on attracting investment with large-scale, environment-friendly, and technology-rich projects. With the recent resumption of international commercial flights, Vietnam expects to welcome more investors in the coming months," said Phuong.

Overcoming the negative effects of COVID-19, Vietnam has achieved a GDP growth rate of 2.12% in the last nine months. The solidarity of its political system, people, and enterprises makes Vietnam confident of achieving its GDP growth target of 2.5-3% this year.