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In the period 2016-2020, Vietnam's macroeconomy is kept stable. Photo: H. Diu

Economic stability, trade surplus for 5 consecutive years

Before that, when making his opening speech, Prime Minister Nguyen Xuan Phuc said that, looking back five years, Vietnam is really better than ever, with high growth, all people enjoy development achievements, and confidence is strengthened.

The Economist magazine in August 2020 ranked Vietnam in the top 16 most successful emerging economies in the world. According to the World Bank (WB), with an average economic growth of 6.8% a year in the 2016-2019 period, Vietnam is among the top 10 highest growing countries.

According to Standing Deputy Prime Minister Truong Hoa Binh, the economic development task for the 2016-2020 period has been carried out in a context of many advantages but also many difficulties and challenges when the world situation has witnessed complicated developments, trade conflicts have increased, especially the global Covid-19 pandemic since early 2020.

However, in implementing Resolutions and Conclusions of the Party and National Assembly on socio-economic development for 5 years, the Government has actively issued resolutions and specific action plans.

Thanks to that, according to Deputy Prime Minister Truong Hoa Binh, the country has achieved many important achievements such as ensuring the "dual goal" of fighting the pandemic and developing the economy.

Specifically, the average growth rate in the 2016-2019 period is 6.8%/year. Although it is heavily affected by the pandemic, the growth rate for the whole 2020 will reach 2.91% – the highest growth rate in the world.

GDP scale increased by about 1.4 times compared to 2015 (according to the International Monetary Fund, by 2020 Vietnam could become the 4th ranked ASEAN economy); GDP per capita in 2020 is estimated at about US$2,750.

Labor productivity has been significantly improved. On average in the 2016-2020 period, it will increase 5.8%/year, higher than the 2011-2015 period (4.3%) and exceed the set target (5%).

Growth has gradually shifted from breadth to depth, increasingly relying on science and technology.

The macro economy continued to be stable; the consumer price index (CPI) decreased from 18.6% in 2011 to less than 4% in the 2016-2020 period. The exchange rate and the foreign exchange market were quite stable; interest rates tended to decrease gradually; surplus payment balance and national credit rating has been improved.

Financial discipline were strengthened. State budget revenue in 2020 reached 96% of the estimate. State budget restructuring achieved positive results, the proportion of domestic revenue increased to 81.6% (in the 2011-2015 period it was 68.7%); the proportion of development investment expenditures increased to 27-28%, the proportion of recurrent expenditures decreased to 62-63%. State budget deficit and public debt were controlled within safe limits and decreased compared to the previous period.

The total social investment capital compared to GDP is about 33.4%. Total export and import turnover in 2020 is estimated at US$543.9 billion, the trade deficit for 5 consecutive years (estimated at US$19.1 billion in 2020).

The domestic market is focused; market management, as well as the prevention of smuggling and trade fraud were strengthened.

Markets are basically operated smoothly, initially linked with the region and the world. The economic and social infrastructure system is concentrated in investment resources; many key projects have been started. People's lives have been improved, administrative reform has seen many changes, the business environment has been improved, national defense and security have been maintained.

Delegates attend the Government Conferences with localities. Photo: VGP

"Double difficulties need triple efforts to solve"

In addition to the achievements, Deputy Prime Minister Truong Hoa Binh also frankly acknowledged the limitations and shortcomings.

“Economic growth in 2020 does not reach the plan due to the impact of the Covid-19 pandemic, leading to an average growth of 2016-2020 not reaching the target. The resilience of the economy is not very solid; competitiveness and autonomy are still limited,” said the Deputy Prime Minister.

Presenting a summary report on the Government's direction and administration in 2020 and 2016-2020, Deputy Prime Minister Pham Binh Minh said that the Government has always grasped the motto from the beginning of the term: “Build a government that creates, integrates, acts and serves the people”.

However, the remaining limitations pointed out by Deputy Prime Minister Pham Binh Minh is that administrative discipline and reform of the working style in some agencies and units have not yet met the requirements. The implementation of the law is still slow. Responsibilities of a number of ministries and branches in coordinating work are not high. There is still a lack of drastic measures, not actively seeking new directions, and being slow to respond to emerging problems.

Therefore, in the future, the Government and the Prime Minister have directed the unified management point of view with the spirit of "double efforts, triple efforts", determination to realize "double goals"; striving to achieve the highest level of set targets and tasks in "new normal" conditions.

On the sidelines of the Government Conference with localities, commenting on the hallmark of socio-economic management in the past 5 years, Dr. Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said: "We have had a golden term of double achievements".

According to Dr. Vu Tien Loc, the Government has established a much more stable macroeconomic foundation than the previous terms. Our country has "wealth to eat". The stable macro-economy has created room for fiscal and credit policies to actively support businesses and the economy. Thanks to that, the total number of enterprises in the country has increased by 1.5 times in just five years.

However, the Chairman of VCCI also said that in the future, there are still many things to do.

“The building of a modern and integrated market economy must be the foundation and the development of the digital economy must be the wings. The three fronts: institutions, human resources and infrastructure are breakthroughs. Enterprise is a public force. The private economy is the pillar. Start-up country is a leading ecosystem,” said Dr. Vu Tien Loc.