Outlook for recovery and growth in 2022

Thursday, 03/02/2022 09:36
Vietnam’s economy has gone through a difficult year. In this situation, Resolution 128/NQ-CP adopting provisional guidelines on safe adaptation to the COVID-19 pandemic issued by the Government has brought about space for economic development, circulation of goods and business for people and businesses, helping to strongly recover the economy.

Exports expected to rise

In the context that all countries are affected by the COVID-19 pandemic, Vietnam still witnessed very positive growth in exports. In 2021, the country earned 336.25 billion USD from exports, up 19% compared to last year. Eight export items bagged over 10 billion USD each, accounting for 69.7%. Vietnam’s trade surplus reached 4 billion USD.

Vietnam still witnessed very positive growth in exports in 2021 despite COVID-19. (Photo: VNA)

According to economic experts, in spite of impressive results in the period affected by the COVID-19 pandemic, exports still had limitations. Specifically, Vietnam is still passive in responding to unfavorable developments in the international market and too dependent on a number of import and export markets. Besides, import and export activities mainly came from foreign-invested enterprises. While the domestic economic sector achieved 88.71 billion USD of export turnover, accounting for 26.4% of the total, the FDI sector earned 247.54 billion USD, accounting for 73.6%.

Aiming to exploit the export market well, Director of the Ministry of Industry and Trade’s Department of Trade Promotion Tran Ba Phu said that the Ministry has assisted to organize numerous online conferences or combined face-to-face and online meetings nationwide on trade promotion for businesses in the digital environment. In addition, the ministry also organized domestic and online international fairs and exhibitions.

Push from big supports

In 2022, Vietnam and the world are still facing great and unpredictable challenges of the COVID-19 pandemic. Based on the actual situation and the policy of living together and being safe from the pandemic, the National Assembly approved socio-economic development targets in 2022 with GDP growth from 6-6.5%, GDP per capita of 3,900 USD, and average growth rate of the consumer price index (CPI) of 4%.

The National Assembly has adopted a Resolution on fiscal and monetary policies to support the socio-economic development and recovery program. This is the largest-ever support package, up to nearly 350 trillion VND, with comprehensive coverage from disease prevention and control to fiscal, monetary, social security, infrastructure investment and institutional reform. The move is expected to be a spiritual and financial boost, creating a driving force for the economy after the pandemic.

The program identifies key issues with 5 main groups of tasks and solutions, scheduled to be implemented in 2022-2023, including: opening the economy associated with investment in improving capacity of health care, epidemic prevention and treatment (60 trillion VND); ensuring social security and supporting jobs (53.15 trillion VND); supporting the recovery of enterprises, cooperatives and business households (110 trillion VND); developing infrastructure, unleashing social resources for investment and development (113.85 trillion VND); and institutional reform, administrative reform, and improving the business investment environment. In addition, 10 trillion VND will be mobilized from non-budget financial funds.

Mr. Huynh Thanh Van, Vice Chairman of the Southern National Startup Advisory Council, said that supportive policies from the State are very practical for businesses during the recent difficult time. When the economy is on a strong recovery path, the National Assembly and the Government's continued implementation of the support package will help businesses have more opportunities, promptly encourage and create motivation for businesses to realize their production and business plans./.

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