PM sets sights on GDP growth of up to 3% amid COVID-19 fears

Addressing a regular monthly Cabinet meeting for August held in Hanoi on September 4, PM Phuc expressed his optimism about the shape of the national economy which he said is gradually recovering from the initial negative impact of the COVID-19 pandemic.

He quoted figures released by the Ministry of Planning and Investment, saying during August the economy maintained its macroeconomic stability and control over inflation, with the consumer price index increasing by a mere 0.07% from the previous month, a record low in the 2016 to 2020 period.

Most notably, commodity exports continued to represent a bright spot in the national economic picture during the past eight months. Despite the impact of the COVID-19 pandemic, the country enjoyed a trade surplus of US$11.9 billion, with exports alone bringing back more than US$174 billion, an annual increase of 1.6%.

Furthermore, various ministries and localities implemented a range of synchronous solutions aimed at removing difficulties and speeding up the disbursement of public investment.

“Our economy has been ranked fifth or sixth among the top emerging economies globally. According to international financial institutions, the Vietnamese economy is likely to grow at between 2% and 3% this year unless we put in place a number of adopted solutions,” said PM Phuc.

According to the PM, Vietnam should strive to continue studying and adopting fiscal and monetary policies in a flexible manner in order to stimulate the economy, while simultaneously ensuring macroeconomic stability and controlling inflation. The State leader therefore suggested further cutting interest rates of bank loans, boosting exports, stimulating local consumption, and attracting additional investment capital sources.

“It is imperative to build a self-reliant economy to reduce the reliance on foreign sources of raw materials and supply chains,” PM Phuc said. “To do so, we have to pay special attention to large, leading enterprises and develop the domestic market of nearly 100 million people.”

“We are determined to continue to meet the dual goal of epidemic prevention and economic recovery in any circumstances to achieve the highest possible growth rate,” stressed the PM.

As the country still has plenty of room to boost exports, PM Phuc requested that the Ministry of Industry and Trade and localities devise specific action plans for implementation over the course of the remaining four months of the year.

He also requested that ministries and localities tighten COVID-19 prevention and control measures in order to nip any resurgence of the virus in the bud.