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Fighting against COVID-19: “No socio-economic interruption allowed!”

(VLR) In the situation of corona virus strike-back, the Prime Minister asked authorities of various levels, sectors and locales to maintain the double target: fighting against the pandemic and carrying out duties of socioecnonomic developments. “No socio-economic interruption allowed!”

Fighting against COVID-19 and no socio-economic interruption allowed

Fighting against COVID-19 and no socio-economic interruption allowed

Escaping from negative growth

According to reports on socio-economic situation of the second quarter and the first six months of 2020 from the General Statistics Office of Vietnam, due to impacts from climate changes, the pandemic of COVID-19 and the African Swine Fever Virus disease, sectors of agriculture, forestry and aqua-products had a light increase in the first six months of 2020- lower than those year-over-year of the previous year. The agriculture sector has an increase of 0.83%- only higher than the negative growth level of 0.78% of the first six months of 2016 in the period of 2011 - 2020, contributing 0.1 percentage point to the total growth of the whole economy; the forestry had an increase of 2.15%, but had a low proportion so it only contributed 0.01 percentage point; the aqua-product sector had an increase of 2.37%- only highter than the growth of 2.34% of the first 6 months of 2013 and the growth of 1.25% of the first six months of 2016 in the period of 2011 - 2020, contributing 0.08 percentage point.

In the first months of 2020, the pandemic had serious impacts to activities of trade, service and import- export

In the first months of 2020, the pandemic had serious impacts to activities of trade, service and import- export

The industry sector in the first six months had an increase of 2.71% year-overyear- much lower than the increase year-over-year of the years of 2011 - 2020, contributing 0.93 percentage point to the total growth of the economy. The processing industry sector had an increase of 4.96%- lower than those year-over-year of the years in 2011 - 2020, contributing 1.1 percentage point. The construction sector had an increase of 4.5%, higher than the increase of 0.11% and 2.41% of the first 6 months of 2011 and 2012 in 2011 - 2020, contributing 0.28 percentage point…

Especially, in the first months of 2020, the pandemic had serious impacts to activities of trade, service and import- export. The service sector in the first 6 months had the lowest growth year-over-year. In the field of service, whole sale and retail had an increased of 4.3% year-over-year compared to the previous year- the sector is considered having the most contribution to the total growth of the economy with 0.46 percentage point; activities of banking, finance and insurance increased 6.78%, contributing 0.32 percentage point; the field of transport, warehousing decreased 3%, lowering 0.1 percentage point; the sector of accommodation and F&B had a decrease of 20.7%, lowering 0.95 percentage point…

According to WB’s analysis, in July 2020, Vietnam economy kepts recovering with the productions of processing industry and the national retail income increased 2.1% and 4.6% year-over- year in succession, however, they were lower that those year-over-year in 2019. It is obvious Vietnam’s economy has escaped from negative growth, however it has not been recovered to the level before the crisis. The biggest challenges of Vietnam currently is to find new driving force to consolidate the recovery. It is difficult for demand from foreign countries and consumption from the country to come back to the level before the pandemic for there are still many unpredicted factors from inside and outside the country.

Fighting against the pandemic and speeding up socio-economic recovery

At the Governmental regular press conference on August 3rd, Ministry- Chairman of the Government Office Mai Tien Dung said although the re-outbreak of the pandemic of COVID-19 had negative impacts on many fields, socio-economic development situation of the first 7 months of 2020 kept growing. It is noted that the macro economy has maintained its stability, inflation has been controlled, consumer price index (CPI) is likely to decrease, interest rate has decreased and foreign exchange rate has been stabled. Generally in 7 months, export turnover reached nearly USD 145.8bn- a light increase of 0.2% year-over-year. The spot light is the nation economy increased 13.5%; import estimatedly reached USD 139.3 bn- a decrease of 2.9%; export surplus reached USD 6.5bn.

Fighting against the pandemic and speeding up socio-economic recovery

Fighting against the pandemic and speeding up socio-economic recovery

Vietnam is the country of the 5th highest growing economy in the world in 2020. However, Vietnam will have to move in an uncertain world both domestically and internationally in the near future. It is possible that the Government has to change its fiscal policies for efficiency in the situation of economic recovery.

Stefanie Stallmeister - World Bank Acting Country director for Vietnam

Dung said Prime Minister had guidance to leaders of various levels and sectors there should be synchronous measurements to fight against the pandemic and also measurements to facilitate cargo flows in the time of the pandemic as well. Besides, there should be efforts for 100% reimbursement of public investment capital for 2020 and for previous years- a main political duty of 2020. Especially, there should be trouble-shooting measurements for business and productions, ensuring social security in the situation of the pandemic in accordance to the Guidance no.11, the Decree no.41, and Resolutions no.42 and no.84…In spite of having impacts from the pandemic and disasters, the agricultural production has maintained its stability: having active shifting structure, being a basis for the economy and securing food security; total retail and service income in July are likely to increase well thanks to policies of stimulating consuming and local tourism. Generally total retail income of the first 7 months were equally 99.6% year-over-year in 2019, retail income increased 3.6%.

Especially, the amount of public investment capital reimbursement had a record increase in July: planned reimbursement of capital from the national budget in 7 months reached VND 194.2 thousand billion, equally to 41.26% of the assigned plan from the beginning of the year (32.27% year-over-year). Speed of reimbursement of the following month has been higher than that of the previous one. FDI and private investment has been growing well: newly registered FDI capital in 7 months increase 14.4%, with reimbursement of over USD 10.1bn; the number of enterprises coming back to operation in the month increased 79,9% yearover-year in 2019.

Lam Trinh

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