VEPR: Vietnam’s economy is growing 6.3% in 2021

Pham Thi Anh, chief economist of the Vietnam Institute of Economics and Political Research (VEPR), said in a recent seminar where Vietnam’s quarterly macroeconomic report was announced that Vietnam’s economy may grow from 6% to 6.3% by 2021. He said that due to the COVID-19 vaccine, the global economy is showing signs of recovery, but due to uneven growth between countries and economies, instability still exists. Vietnam’s economic growth rate in the first quarter reached 4.48%. Hundred thanks to the government for taking drastic measures in the early stage to fight the pandemic, and signed the “EU-Vietnam Free Trade Agreement” and the “EU-Vietnam Investment Protection Agreement.” In addition, the distribution of public investment capital has increased, the progress of major public investment projects has accelerated, and the wave of investment and trade has shifted to Vietnam, which helps maintain a stable macroeconomic environment in the face of inflation. Problems faced in an uncertain economic environment. The recovery of COVID-19 in many countries has led to isolation measures, prolonged supply chain disruptions this year, and weakened companies’ resilience. Political conflicts between major powers may also expose Vietnam to unexpected risks. Other risks include fiscal imbalances, slow and sluggish investment, a fragile financial and banking system, and the growth of the sector heavily dependent on foreign investment.VEPR recommends giving priority to people-oriented welfare policies. The report also recommends the continued implementation of business support policies with broader measures and more focus. Anh said that Vietnam should gradually establish a tax buffer to prevent shocks like COVID-19 or unexpected events in the next few years.