Vietnam’s economy remains resilient despite COVID-19 challenges: ADB

(VOVWORLD) - Vietnam’s economy is expected to grow 1.8 percent in 2020 despite the COVID-19 pandemic and bounce back to 6.3 percent in 2021, according to a report released by the Asian Development Bank (ADB) on Tuesday.
Vietnam’s economy remains resilient despite COVID-19 challenges: ADB - ảnh 1The ADB hosts a press briefing on September 15, 2020, to announce ADB 2020 Update. (Photo: VGP) 

According to ADB Country Director for Vietnam Andrew Jeffries, lower domestic consumption and weak global demand caused by COVID-19 have hurt Vietnam’s economy more than expected. But economic growth will be resilient in 2020, in large part due to the government’s success in controlling the spread of COVID-19.

Economic growth will be supported by the country’s macroeconomic stability, increased public spending, and ongoing reforms to improve the business environment, he added.

ADB forecasts that Vietnam’s economy will  bounce back in 2021 thanks to  public investment, strengthened trade cooperation between Vietnam and the EU and China, and the shift of global value chains to Vietnam. The report says the low growth will keep inflation at 3.3% in 2020 and 3.5% in 2021.

ADB 2020 Update says Vietnam’s economic outlook over the medium and long term remains positive. The country’s participation in a large number of bilateral and multilateral trade agreements will help the economy rebound.