(VOVWORLD) - Many international economic organizations including the World Bank, the International Monetary Fund, and Fitch Ratings have said Vietnam's economic growth rate will likely reach 6.5% this year, coinciding with the target set by the Vietnamese government. Vietnam's economy is recovering and enjoying many advantages for sustainable growth in the future.
 (Photo: VNA) |
According to the General Statistics Office (GSO), in the first quarter of this year Vietnam’s GDP increased more than 5%, industrial output was up 6.4%, retail sales of consumer goods and services was up 4.4%, and realized investment was up nearly 9%.
Exports were up 12.9%, and imports increased 15.9%, with a trade surplus of nearly 810 million USD. The number of foreign tourists visiting Vietnam also increased nearly 90%. There were more than 34,000 new businesses.
 Dr. Le Xuan Sang Deputy Director of the Vietnam Institute of Economics (Photo: congluan.vn) |
Dr. Le Xuan Sang, Deputy Director of the Vietnam Institute of Economics, said, “The growth rate is reasonable given the recovery and opening up of our economy. Amid increasing input prices and the impacts of the Russia-Ukraine conflict, this growth rate demonstrates the great and effective efforts of the Government and businesses.”
 Economist Le Duy Binh, Managing Director of Economica Vietnam (Photo: Do Linh) |
Economist Le Duy Binh, Managing Director of Economica Vietnam, a private consulting and research firm specializing in development economics, said, “The growth rate proves how hard we have strived. 5.03% shows a definite recovery of the economy.”
“The policy of safe and flexible adaptation and rapid vaccination has worked well to get the economy back on a growth track and has laid a good foundation for next year. The growth rate also shows that Vietnam can limit negative effects from the global market such as an increase in material prices,” said Binh.
Despite encouraging growth, economists agreed that the rise is just average compared to the rest of Southeast Asia.
ASEAN as a whole is likely to see a growth rate of about 5%, which means Vietnam’s 5.03% growth is only slightly higher than the average.
To realize the set target of 6.5%, the Government, the business community, and the public are encouraged to do their utmost to achieve 7% growth in the remaining quarters.
Economist Nguyen Bich Lam, former Director General of the General Statistics Office of the Ministry of Planning and Investment, said, “We’re still worried about difficulties faced by breeding and fishery exploitation due to the increase in feed prices and fuel prices.”
“The construction sector is facing difficulties in investment capital disbursement. Though aggregate demand has recovered slowly, domestic aggregate demand has been big. 35,700 of 62,000 new businesses had to suspend their trading, due to the prolonged pandemic and the Russia-Ukraine crisis. They will need more help in the future,” according to Lam.
A GDP growth rate of 5.03%, a considerable achievement considering the previous two years, was made possible by effective policies by the Government, ministries, and localities to help the business community and the public.
Tran Quy, Director of the Vietnam Institute of Digital Economy Development, said, “In the second quarter, Vietnam's economy will be affected by a number of global issues. State policies must provide greater support for businesses and people.”
Quy added, “Global fluctuations will lead to an escalation of prices, so it’s very important to stabilize prices in the domestic market and stabilize people's lives. And we need to promote digitization and the digital economy. This is what the Government and state management agencies must focus on. Businesses must change to survive, and people must improve their digital skills.”
In the new economic context, more prompt, flexible policies need to be adopted to help businesses and the economy grow sustainably and to realize the growth target of 6.5% set by the government.