Fresh impetus could spur on Vietnamese economic growth in 2021

Cung, who is also a member of the Prime Minister's economic advisory think-tank, underlined the need to immediately launch stimulus packages in an effort to bolster the economy, promote the development of new sectors, and mobilise all resources for a more dynamic economy.

The country’s successful containment of COVID-19 in 2020 coupled with its recent socio-economic development achievements indicate the resilience of the national economy, especially the business resilience shown by local firms during this challenging period.

It’s the Government’s prompt response and timely support for local firms that helped the country to record several major economic achievements last year, the economist told VOV.

Cung also pointed out that while the global economy slipped deeper into recession due to COVID-19, Vietnam was one of few economies that enjoyed positive growth last year.

“The 2.91% growth rate in 2020 will create the prerequisite for the country to even beat the 6% target as set by the National Assembly for this year should the government continue with radical reforms and a thorough economic recovery plan,” said the economist.

According to Cung, 2021 is the first year Vietnam starts implementing the freshly-concluded National Party Congress’s resolution and the new socio-economic development strategy ti;ll 2030. Therefore, he expressed his belief that this year’s breakthroughs will lay a solid foundation for future socio-economic development.

The economist went on to underscore the importance of facilitating the sustainable development of the private economic sector, accelerating efforts of institutional reform, and launching new stimulus packages aimed at aiding the economy.

“Institutional reform must be stronger and more comprehensive with a focus on simplifying administrative procedures, improving the business climate, and carrying out radical reforms to raise the market level of the economy, especially the allocation and use of resources in an effective manner,” he noted.

As part of efforts to help the private economic sector develop steadily and become an important driving force for Vietnamese economic development, Cung stressed the need to make stronger transformations, liberalise the domestic market, reduce costs for enterprises, and re-allocate resources towards building a wealthy and strong nation.

The economist also called for the removal of barriers faced by businesses, whilst protecting their legitimate rights and interests, along with fine-tuning the legal system and facilitating the application of science and technology for further development.

It is essential to form and develop large private economic groups that can boast great potential and stringent competitiveness in both regional and international markets, he suggested, anticipating with the goal of having at least two million enterprises by 2030, the private economic sector can contribute between 60% and 65% to the country’s GDP by this date.