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World Bank suggests ways for Vietnam to recover economy

by NDO/VNA29 September 2021 Last updated at 15:34 PM

WB experts said economic recovery pace is closely associated with vaccination scale. (Illustrative image/Photo: VNA)
WB experts said economic recovery pace is closely associated with vaccination scale. (Illustrative image/Photo: VNA)

The World Bank has suggested the Vietnamese Government early devise back-up plans in case the COVID-19 pandemic could last one or two more years, and conduct vaccination in parallel with testing to control the pandemic and mitigate its economic loss.

In its September report, the bank said while travel restriction could be maintained, it should be done in a flexible manner, and a suitable balance should be sought for fiscal and monetary policies, while enhancing social support for vulnerable groups.

WB experts said economic recovery pace is closely associated with vaccination scale, but testing remains an important method to fight the pandemic.

As vaccinated residents still pose risk of infections, targeted quarantine is the most cost-effective way and using software and digital tools to restrict travelling is highly recommended.

According to the experts, fiscal policy should be used more than monetary policy as it could stimulate demand in the short term and boost supply in the long term.

Meanwhile, monetary policy is a tool to provide temporary support for firms but its efficiency is limited as interest rates are low and many do not have banking accounts.

They proposed the Government allocate more capital for social assistance programmes, use modern technology to identify vulnerable persons, and expand digital payment to effectively access bềniciaries.

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