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The spring of ambitions 2021

(VLR) The country has been going through a year of full challenges with the pandemic and natural disasters. But people are still happily waiting for another warm peaceful coming spring.

The year 2021 is considered an important year for it is the first year in the economic development period of 2021 - 2025

The year 2021 is considered an important year for it is the first year in the economic development period of 2021 - 2025

Overcoming challenges

The pandemic of COVID-19 caused serious impacts to national spearhead sectors as tourism, airlines, labor export and goods export. Vietnam, however, had the economic growth of 2.91% in 2020. This is the lowest one in the 5-year plan of 2016 - 2020, but showing respectful achievement of Vietnam in overcoming challenges. Vietnam is among a few countries with positive economic growth in the region and in the world as well.

When there was the first case in January 23rd, 2020, Vietnam deployed serious measurements to prevent the outbreak of the pandemic. The National Steering Committee for COVID-19 Prevention and Control was founded and it has issued guidance documents, mobilizing participation from the whole political system and the whole people.

When the second outbreak came, Vietnam had more experience on social distancing and deployed in a smaller scale, which helped minimize negative impacts to production and business activities. Vietnam, thus, could maintain its economic space for enterprises and people, even in difficult times of 2020.

In addition, there have been firm guidance works from the Government on economic growth. For example, the Government pushed up public capital disbursement by shifting the blame to heads of public investment projects of their managements. So, they have to be more active in using existing resources effectively and improving information system, having experts’ consultancy for their investment decisions.

Besides, the Government has had many assisting policies which helped enterprises overcome difficulties, for example, there have been policies on capital supporting, administration procedure innovation, tax decrease and online working,… Besides bilateral and multi-lateral trade agreements have been signed, offering opportunities of cooperation and exporting necessary products- export opportunities for Vietnam’s enterprises. New economic models have been researched and practically converted into policies, for example, the Project of Developing Night Economy in Vietnam.

Driving force for breakthroughs

In meetings with enterprises, the Prime Minister said Vietnam has been the world’s large factory now- a fulcrum of many large corporations, multi-national corporations with global and regional production chains as Samsung, Toyota, Honda,… and thousands of other FDI enterprises- as a proof for quality of Vietnam’s investment environment and growth.

The growth of many Vietnam’s private economic corporation also showed the business environment can be a nursery garden for many large corporation with abilities to compete and to be equal partners to international corporations as well. Many enterprises no longer play in the home playground, but go further to the world’s one, confirming their international competition abilities and their stature as well.

Vietnam would be one of the three Southeast Asian economies that had great differences in term of economic growth in 2021

Vietnam would be one of the three Southeast Asian economies that had great differences in term of economic growth in 2021

The year 2021 is considered an important year for it is the first year in the economic development period of 2021 - 2025. However, difficulties and challenges are forecast due to complicated changes and negative impacts from the lingering pandemic of COVID-19.

However, the Government believed Vietnam would go far in the coming period: The Assembly set the growth target of 6% in 2021, the Government said it would be 6.8%. Why was it so confident? The Government has had experience from the outbreak of COVID-19, the U.S-China trade war on various fields, and technology changes to consider and adjust their managements of the country.

Besides, the Government has had attempts to stabilize the micro-economy, to go together with the business community to overcome challenges for economic recovery, to facilitate investment activities and to push up public investment in 2021- as a sample for the following years of the period.

In the other word, the Government has improved their supports to the business community to maintain their interests in business activities: improving basic policies on infrastructures, human resources and enterprise connection for effective FDI attraction, making good use of investment shifting wave to Vietnam.

Vietnam has been a center of more importance in the global industrial processing ecology

Vietnam has been a center of more importance in the global industrial processing ecology

The Government has especially pushed up innovations in business environment and competition abilities. “Do not let interests ruin the business environment”, the Prime Minister said. There should be efforts from three sides: enterprises should get rid of the practice of expecting supports from the Government too much, FDI enterprises should be more open in their supply- demand policy, offering more opportunities for Vietnam’s enterprises to take part in their supply chains.

It is obvious that Vietnam has been a center of more importance in the global industrial processing ecology. In the fourth quarter of 2020, Index of Industrial Production (IIP) increased 6.3% year-over-year (December only, +9.5% year-over-year), the production sector reached the remarkable growth of 9% year-over-year- a proof of the recovery: production has returned to its conditions before the pandemic of COVID-19 happened.

In addition, the signing of the Free Trade Agreements as CPTPP, EVFTA and RCEP also has positive impacts on Vietnam economic growth in the coming year.

It is obvious that Vietnam has been a center of more importance in the global industrial processing ecology. In the fourth quarter of 2020, Index of Industrial Production (IIP) increased 6.3% yearover-year (December only: +9.5% year-over-year), the production sector reached the remarkable growth of 9% year-over-year- a proof of the recovery: production has returned to its conditions before the pandemic of COVID-19 happened.

Vietnam has had experience in carrying out innovations in passing years, even at the time there were difficulties in economic situations in the country and in the worlda proof that the motive force for innovation will be maintained, renewed and contributed effectively in economic results in 2021: larger economic targets will be achieved.

Western media and international experts said with serious measurements of pandemic prevention, dealing actively with challenges and the world’s economic integration, Vietnam in 2021 will maintain its position of a bright spot in economic growth and social stabilization.

Jon Gabriel - the Editor-in-chief of The Republic said: "The world bravely faced a year of challenges, then overcame it and became stronger from these experiences. Whether the year 2021 is better or not depends on our determination and effort”.

Japan’s Nikkei Magazine, in the last days of 2020, said Vietnam would be one of the three Southeast Asian economies that had great differences in term of economic growth in 2021- and would be able to return to its condition before the pandemic outbreak. The magazine quoted the economy expert Yuta Tsukada, Japan Research Institute (JRI): "The advantages of Vietnam’s low production cost will make many enterprises shift their production lines from China to Vietnam, especially when the trade war between the U.S and China keeps going on”.

Another spring with full of energy and ambitions is coming. Ambitions of making a prosperous country will be a motive force for developments and a strength for overcoming difficulties and challenges for a new stature.

Duy Khanh

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