Optimism about economic growth in 2021

On the basis of the growth rate in 2020, the Government has set the expected target for 2021 higher than the target set in the Resolution of the National Assembly. To achieve this goal, from the beginning of the year, the Government took drastic action and the business community, ministries and sectors accelerated with determination to regain growth momentum.

2021: GDP to reach 6.5% or higher

Vietnam's economy has just gone through a difficult and volatile year, but economic growth has achieved a feat with GDP reaching 2.91%. To promote growth in 2021, the first year of the new term, one of the instructions of the Prime Minister at the Government's Conference with ministries, branches and localities at the end of 2020 were requestedfrom the beginning of 2021, ministries, branches and localities must begin to work non-stop and strive to achieve GDP growth of about 6.5% or higher, at the same time, prepare the foundation to accelerate from 2022 onwards.

To assert the role of breakthroughs in infrastructure and the factor that creates institutional, infrastructure and human resources for growth, from the beginning of the year, a series of key transport projects were launched. Largeprojects were started to create a new climate for the economy of 2021. In the first week of January, Long Thanh International Airport (CHK) Project with a total project investment of VND109,111,742 billion was started in phase 1.

The project to build the North-South expressway in the East, the My Thuan - Can Tho section with a total investment of more thanVND4,826 billion was started. Also during this period, the runway and taxiway were newly upgraded in phase 1 of Noi Bai and Tan Son Nhat airports; while the project of repairing theThang Long bridge surface was also inaugurated and put into use.

In particular, the Prime Minister asked localities to do two things immediately – one is ground for production development and the other is human resources to catch new investment flows.

The good news is that recently, a series of leading manufacturers supplying components and products for global technology giants including Apple, Sony, and Microsoft have invested in Bac Giang and Hai Phong. With names such as Foxconn, Luxshare and Pegatron, many experts say thata new wave of investment will be created in Vietnam. The problem is how to take advantage of this?

Speaking with Customs News, Mr. Le Duy Thanh, Chairman of Vinh Phuc Provincial People's Committee, said that in order to promote economic growth in 2021 as well as in the whole period of 2021-2025, Vinh Phuc province identified three pillars: review, check and remove bottlenecks to unclog resources for economic growth; attracting investment; personnel work.

In particular, regarding human resources, Vinh Phuc gave a tough message: "If you do not move, you will change people". In addition, for breakthroughs in infrastructure, Vinh Phuc is ready to receive 500 hectares of clean land to be invested synchronously to welcome new investment flows.

For high growth, supporting the business community to motivate businesses to start up, and create conditions to support, promote businesses to do business, expanding investment is very important.

At the beginning of 2021, along with the issuance of Resolution 01/2020 / NQ-CP on major tasks and solutions in 2021 and Resolution 02/2020 / NQ-CP on improving the business environment, the Government issued the first decree of the year, namelyDecree 01/2021 / ND-CP on business registration. As a result, in the first working week of 2021, the country had 18,000 enterprise registration dossiers processed, with 2,100 established businesses, up 46% over the previous year.

Newly established enterprises increased, along with many enterprises returning to operation showing the recovery in the enterprise sector.

Assoc.Prof.Dr Nguyen Khac Quoc Bao, University of Economics Ho Chi Minh City, said that Covid-19 is creating new and better business development.

“A new generation of businesses, including thousands of newly established businesses as well as many businesses that have successfully transformed their business models and operating forms. This generation of businesses will certainly create a new growth cycle,”Associate Professor, Dr. Nguyen Khac Quoc Bao said.

Expect bright economic picture

In the new year of 2021, industry and construction with many large projects being invested and implemented will be the growth engine for the Vietnamese economy. Accordingly, the food processing industries; textile; leather shoes; wood processing and wood products manufacturing are promising industries as the export market is expanding. Along with that, the construction industry's growth momentum will continue with expressway projects that are being implemented and completed this year.

Regarding the export sector, as early as January 2021, Vietnam's key agricultural products have consecutively been exported to potential markets such as the US, EU and Japan.

An exciting year of export, aiming to exportUS$44 billion in 2021 of agricultural products. It can be mentioned that the first batch of exported fragrant rice in 2021 with a total volume of 1,600 tons was completedon January 13 in Can Tho.

From the drastic directionof the Government, it is clear that the atmosphere of urgency, the economic recovery and development to regain growth momentum has happened in almost all areas. Along with the good control of the Covid-19 pandemicin 2020, the Vietnamese economy will have conditions for rapid recovery compared to other countries. In particular, the success of the XIII National Congress of the Party will open a new term with new thinking and new driving force in economic development. All of that allows us to expect a year with a brighter economic picture.

Source: Customs News