Vietnam 2020: Pushing up economic development by inner force

The Government has had guidance to all levels and sector to implement “double targets”: fighting against the pandemic as fighting against enemies and make socio-economic recovery and development.

Overcoming challenges

Report by PM Nguyen Xuan Phuc on implementation of the Plan of Socio-Economic Development of 2020 and the 5-year period of 2016 - 2020; Preparation plan for 2021 and orientation, tasks for the 5-year term 2021 - 2025 at the 10th Meeting Session- National Assembly Term XIV clearly stated the pandemic of COVID-19 had negative impacts to various fields of social life: production halted; activities in fields of economy, culture, society were affected; millions of laborers lost job and endured deeply reduced income. And climate changes, extreme weather, disasters in mountainous regions in the North, the Central and Tay Nguyen, saline intrusion and the shortage of fresh water in the Mekong Delta caused negative impacts to production and life.

Facing these difficult situations, the Government has had guidance to all levels and sector to implement “double targets”: fighting against the pandemic as fighting against enemies and make socio-economic recovery and development. We have controlled the pandemic, not allowing it to spread out in the community; we also have international cooperation: promptly helping many countries fight against the pandemic. The World Health Organization and the world community appreciated our efforts and recognized Vietnam was among a few countries that are able to promptly control the pandemic with low costs.

Economic growth in the first 9 months of 2020 reached 2.12%, the whole year estimatedly will reach 2% - 3%- one of countries with highest growth in the region and in the world thanks to making good use of opportunities and quick flexible economic adaption. GDP scale increased 1.4 time compared to that of 2015 (according to the IMF, Vietnam can be an economy ranked 4th in ASEAN); GDP per capital in 2020 is estimatedly around USD 2.750. Productivity is improved; in 2016 - 2020 it increases 5.8% pa annually in average- higher than in 2011 - 2015 (4.3%) and surpassed the set target (5%). Average Total Factor Productivity (TFP) in 5 year reached 45.2% (set target was 30% - 35%). The growth model gradually shifted from breadth to depth, gradually reducing dependence on resource exploitation, raw export, cheap labor, credit expansion and gradually shifting to relying on scientific application, technology and innovation.

Although international trade went down, our import-export turnover increased 1.7 times- around USD 535bn in 2020. Regional export increased 20% in the first 9 months of 2020, export surplus for consecutive 5 years. Local market has been paid much attention to: market control, prices, and prevention from smuggling, commercial fraud have been improved. E-trade developed strongly- sales increased 25% and has become an important delivery channel of the economy in the time of pandemic.

Keep implementing “double targets”

In the opening speech of the 10th Meeting Session of the National Assembly of Term XIV, Chairperson Nguyen Thi Kim Ngan said the year 2020 had important meaning: it is expected to keep the growth and achievements from previous years and to have breakthroughs to fulfill targets of the 5-year plan 2016 - 2020 and it is a year for prepare the next 5-year plan of 2021 - 2025. However, due to negative impacts of the pandemic of COVID-19, global economic downturn, disasters, a number of socio-economic targets would not be fulfilled.

In the remaining of 2020, authorities of all levels and sectors should keep working drastically with innovations, take advantage of opportunities, show Vietnam’s bravery and wisdom, and deploy synchronous solutions to implement the assigned double targets

Reporting to the National Assembly, Prime Minister Nguyen Xuan Phuc said that our country’s economic growth rate in 2020 did not reach the plan due to the impacts beyond the forecast of the COVID-19 pandemic, resulted in the fact the average growth of the 5-year plan 2016 – 2020 did not meet the set targets. Many fields and sectors were heavily affected, as a result, the number of enterprises that stopped working increased sharply. The resilience ability of the economy is low; synchronous infrastructure development do not meet requirements; human resource is unable to meet requirements in both quantity and quality; science technology has not created a proper driving force to improve productivity; economic structure connecting with growth model in a number of fields is not efficient; socialization of public services has many inadequacies…

In which, many branches and fields were heavily affected, the number of enterprises stopped working sharply increased; The resilience of the economy is not very solid, competitiveness and autonomy are still limited; Developing synchronous and modern infrastructure has not met the requirements; Human resource training still has shortcomings in terms of structure, quantity and quality; Science and technology, innovation have not really created adriving force to improve labor productivity.

PM Nguyen Xuan Phuc emphasized: “In the remaining of 2020, authorities of all levels and sectors should keep working drastically with innovations, take advantage of opportunities, promote solidarity, show Vietnam’s bravery and wisdom, and deploy synchronous solutions to implement the assigned “double targets”; try to solve problems in production, push up public disbursement, promote consuming and export on the basis of stable micro-economy, control inflation, ensure large balance of the economy for the basis of development in the coming time. At the same time, we should not be subjective and should implement seriously and efficiently antiepidemicsolution and promptly support businesses, workers and people in difficulties, especially people in the Central who suffered from storms and floods. We strive to achieve targets and tasks of socioeconomic developments in 2020 and the 5-year term 2016 - 2020”.

Lam Trinh