Focus on economic recovery and development
Focus on economic recovery and development
Challenges from the pandemic
In 2021, the 4th outbreak of COVID-19 with the Delta variant in many localities has been much more dangerous than the previous ones and infections at our economic centers and cities forced us to apply many unprecedentedly drastic measures to protect the goal of the first priority: people’s health. Therefore, production and livelihoods have been seriously affected.
According to the Socio-Economic Development Report 2021 by the Government presented at the Opening Session of the 2nd Session of the 15th National Assembly on the morning of October 20, it is estimated that in 2021 the whole country has achieved and exceed 8/12 set-out key targets. Macro-economy continues to be maintained stably; inflation has been under control. The major balances of the basic economy are secured; State budget revenue in 9 months reached over 80%, the whole year was estimated to exceed the estimate, basically ensuring resources for epidemic prevention and other urgent tasks.
However, the consumer price index (CPI) in the first 9 months of the year only increased by 1.82% on average, the whole year is estimated to increase below the level assigned by the National Assembly. It is expected that 4/12 major socioeconomic targets have not yet reached the set targets. Economic growth in the first 6 months of the year reached 5.64%, however, in the third quarter, it decreased by 6.17% due to serious impacts from the 4th outbreak, so GDP in the first 9 months only increased by 1.42%. Macroeconomics still has potential risks; inflation pressure increases; exports decelerated, continuing the trend of trade deficit; import -export depends on the FDI sector and a few markets. There has been a breakdown in some production, supply and labor chains. Financial markets, real estate, and securities experienced remarkable increase at times. Disbursement of public investment capital is slow, especially ODA and concessional loans. The service sector has faced serious difficulties, especially in tourism, accommodation, food and beverage, and passenger transport. Labor and employment were severely affected.
Target: GDP 2022 reaches 6.5%
According to Prime Minister Pham Minh Chinh, main tasks in the last months of 2021 is to focus efforts on COVID-19 prevention and control; expeditiously developing and organizing the implementation of specific plans and scenarios in line with the actual situation; taking drastic action, effectively and synchronously implementing the proposed tasks and solutions according to the motto of being sensitive, flexible, creative, calm and timely with the overall goal of protecting health and people's lives…; having a safe and flexible adaptation roadmap, striving to have effective control of the epidemic nationwide to focus on overcoming the consequences of the epidemic and restoring and developing socio-economics.
Focusing on prioritizing implementations of practical and effective support mechanisms and policies for people and enterprises
Accordingly, the Government continues to direct the review and immediate removal of institutional difficulties and obstacles; reduces production and business procedures and costs. In particular, focusing on prioritizing implementations of practical and effective support mechanisms and policies for people and enterprises; quickly restoring the labor market damaged from direct impacts of the COVID-19 epidemic... ensuring smooth supply and circulation of goods, unleashing all resources for epidemic prevention and control and socio-economic development and ensuring social security.
Previously, on October 11, 2021, the Government issued Resolution No. 128/NQ-CP Provisional Regulations on "Safe adaptation, flexible and effective control of the COVID-19 epidemic" NQ128 to maximum protection of people's health and lives and to minimize the cases of severe disease transfer and death caused by COVID-19; restoring socio-economic development, ensuring security, social order and safety; realize the dual goal of bringing the whole country to a new normal as soon as possible, as soon as possible in 2021.
NQ128 was agreed and appreciated by people, enterprises and all social classes and created a turning point in thinking and new ways in epidemic prevention and control, Deputy Minister of Health Do Xuan Tuyen said that the Government’s issuing of NQ128 was very appropriate in the conditions. The resolution introduced measures to respond to both epidemic prevention and economic development. From the provisions in NQ128, localities can flexibly apply specific measures: not obstructing circulations of goods, products and the movement of people and not contravening the regulations from the Government as well.
PhD. Luu Binh Nhuong said that the principle here is national unity and this issue is recorded in a separate sentence in NQ128. "Localities should not localize and issue regulations beyond the necessary". Sharing the same point of view, Deputy Minister of Transport Le Dinh Tho affirmed the Resolution not only overcomes the circulation of goods, but also is the right decision in the present time, suitable for flexible adaptability, deploying new suitable solutions for the new situation. "In the process of goods circulation, it is inevitable that there are some shortcomings, NQ128 has clearly indicated for us to overcome to restore economic development and prevent epidemics," said Tho.
PM Pham Minh Chinh continued to affirm that the top goal is "Safe adaptation, flexible and effective control of the COVID-19 epidemic, maximum protection of people's health and lives, along with focusing on make good use of opportunities to promote socio-economic recovery and development”; striving to achieve 16 major targets in the fields of economy, society and environment by 2022. In which, the growth rate of gross domestic product (GDP) is about 6% - 6.5%; average growth rate of consumer price index (CPI) is about 4%; State budget deficit over GDP is about 4%.
“In the context that our country still has many difficulties and challenges with unpredictable developments and impacts of the COVID-19 pandemic, the task of implementing the socio-economic development plan in 2022 and the coming time is very heavy. With the spirit and determination of the entire Party, people and army, with the great unity of the whole nation and the people's belief in the leadership of the Party and management of the State, we will soon repel the epidemic to recover and develop socio-economic, constantly improve both material and spiritual life of the people, and lead the country firmly forward on the path of innovation, integration and development”, emphasized Prime Minister Pham Minh Chinh.