Vietnam continues to focus on macroeconomic stabilization

This year Vietnam continues to maintain macroeconomic stability amidst unfavorable international conditions.

In a recent interview with VOV, Deputy Prime Minister Vuong Dinh Hue said this year the regional and international situations are forecast to undergo many unpredictable developments, challenging Vietnam’s economic growth. Therefore, Vietnam’s number one priority this year remains macroeconomic stabilization.

Deputy Prime Minister Hue said, “Macroeconomic stability is one of the major issues often mentioned in resolutions of the Party Central Committee, the National Assembly, and the government. It’s also important to create more driving forces for economic growth. These two issues are closely related to each other.

High growth is one of the conditions for macroeconomic stability while macroeconomic stability is very important to boost national development rapidly and sustainably.”

2019 was the third consecutive year Vietnam had completed all 12 socio-economic development targets set by the National Assembly, 5 of which exceeded the plan.

Moreover, the growth rate of more than 7% is among the highest in the world, 3 times higher than the global average. Inflation was well controlled at less than 3%, much lower than the target set by the National Assembly.

Last year’s economic achievements were a prerequisite for further growth this year 2020, especially when Vietnam assumes ASEAN Chairmanship and non-permanent membership of the UN Security Council for the 2020-2021 tenure.

Economist Nguyen Minh Phong said, “In 2020, the economy of Vietnam and the world will continue to enjoy a better growth due to the ease of the US-China trade tensions. The Regional Comprehensive Economic Partnership is expected to be signed in the second quarter of this year.

The higher growth will also be ensured by the stable production and trade in Vietnam and the region which were affected by the US-China trade war last year. Moreover, 2020 is the year before the 13th National Party Congress is held. This means that the improvement of the business investment environment will be implemented more aggressively.”

Economist Can Van Luc said, “There are three drivers for economic growth in 2020: export is forecast to continue to grow at 9%, foreign investment (FDI) continues to be a highlight due to the movement of investment from Hong Kong and China to Vietnam, and the capital source of the private economic sector is said to increase about 17%. Inflation is expected to be controlled at between 3.2 and 3.5%.”

To realize the targets set for 2020, since the beginning of the year, the Government has advanced two resolutions on implementing the socio-economic development plan and State budget estimates for this year and key solutions to improve the business environment and enhance national competitiveness.