(VOVWORLD) - The COVID-19 pandemic has played havoc with all socio-economic aspects of Vietnam. Although production and sales are facing many difficulties, economic growth is strong, the macroeconomic situation is stable, inflation is under control, and the economy remains balanced. Success in containing the epidemic and encouraging economic signals have solidified confidence and created a firm foundation for recovery.
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The COVID-19 pandemic will continue to have an economic effect on Vietnam because the Vietnamese economy is now deeply integrated internationally. The pandemic has disrupted production, supply chains, and trade flows around the world.
In this context, Vietnam has focused on its dual task of containing the epidemic and maintaining economic growth.
Multiple mechanisms and policies have been adopted to help individuals and businesses in need and accelerate the disbursement of public investment capital.
In a report on COVID-19 containment and economic recovery efforts delivered at ongoing National Assembly meeting, Prime Minister Nguyen Xuan Phuc said, “Despite great difficulties and challenges, we still have breakthroughs in economic growth thanks to the efforts of the entire political system, the business community, and the people.”
He said, “In particular, we have maintained a stable macro-economy, a balanced economy, and good conditions for a strong post-epidemic recovery and growth. Exports grew in the first 4 months, and 15 items achieved export turnover of more than 1 billion USD. The trade surplus was nearly 3 billion USD. The business and investment environment continues to improve. Administrative procedure reform has made progress. Despite a sharp decline from last year, GDP growth in the first quarter was still 3.82%, comparatively high for the region and the world.”
Vietnam’s successful containment of the epidemic has instilled confidence that Vietnam can take advantage of coming changes to the global economic structure, modes of production, and consumer habits.
Economist Vo Tri Thanh praised the adaptability of Vietnamese enterprises over the last 5 months.
“The first and most obvious change businesses have made is in products. Some companies have added value to their products through innovation and new relationships with their markets and partners,” said Thanh.
He took examples of “the aviation sector has shifted from passengers to cargo; fashion companies are making medical masks instead of clothes. Other companies have changed their business model. Some have switched to e-commerce or changed their management structure.”
According to Thanh, Vietnamese enterprises are becoming more creative and adaptable, adding, “Many businesses have had to change to survive and this has enlarged their aspiration and vision. Their short-term adaptation has become a larger restructuring of business model, markets, and management method in preparation for the post-epidemic period.”
In the coming months, the Government will continue to provide capital, reduce lending interest rates, and restructure to support the recovery and growth of restructuring industries.
It will also support small and medium-sized enterprises, especially in the service, tourism, and aviation sectors.