Vietnam to end 2020 on an optimistic note

Vietnam is one of the few countries that are still registering positive growth and a V-shaped economic recovery, making it one of the 16 most successful emerging economies.

In its latest report released on December 10, the Asian Development Bank upgraded its growth forecast for Vietnam in 2020 from 1.8% to 2.3%, with growth in 2021 projected at 6.1%.

2020 was a successful year for Vietnamese rice, in terms of output, price and export revenue. The business community was strengthened with an average of 15,000 new enterprises established each month. Digital transformation is also accelerated in businesses and government agencies.

2020 also recorded new milestones in international integration with Vietnam assuming the roles as a non-permanent member of the UN Security Council, ASEAN Chairmanship and AIPA Chairmanship. Vietnam adopted a trade agreement with the European Union, signed the Regional Comprehensive Economic Partnership and reached a free trade agreement with the UK. Vietnam was also named as the World's Leading Heritage Destination at the 2020 World Travel Awards.

According to the UN Sustainable Development Report 2020, Vietnam is the sole Southeast Asian country to have fulfilled five UN action goals, which include those on reducing carbon dioxide emissions, promoting renewable energy and enhancing resilience to climate change. The ratio of multidimensional poverty is expected to fall to 2.75%, compared with 9.88% in 2015 and 3.75% in 2019, making Vietnam one of the first countries to attain the UN goal on poverty reduction.

Such positive results are based on the achievements and growth drivers of 2019 combined with Vietnam’s success in containing the spread of Covid-19 and early introduction of financial and monetary measures to support businesses and the people.

Vietnam has managed to accelerate public investment disbursement, continued to improve the business climate, took part in global value chains more deeply, promoted economic reform and digital transformation, diversified supply chains and formed new economic links. Vietnam is expected to benefit from its participation in bilateral and multilateral trade agreements as well as the relocation of supply chains to lower-cost and safe countries.

In order to achieve a greater success in 2021 and the following years, all agencies and sectors need to give priority to protecting public health while facilitating socio-economic activities.

Vietnam is aiming for GDP growth of 6% in 2020, with GDP per capita at US$3,700 and inflation at 4%. The initial successes in the fight against Covid-19 and efforts to maintain economic growth, social stability and the country’s prestige are the important foundations for Vietnam to look to higher goals in the future.