A flexible and creative approach between fighting the Covid-19 pandemic and boosting economic recovery is essential for Vietnam at the moment, said Prime Minister Pham Minh Chinh at the monthly government meeting held today [July 1].

Prime Minister Pham Minh Chinh at the meeting. Photos: Nhat Bac

“In a certain number of provinces and cities, priority should be given for containing the pandemic, while in others, it is socio-economic development tasks that are more of an urgent issue. And there are situations that we should balance both,” Chinh noted.

The PM referred to two provinces of Bac Giang and Bac Ninh that are focusing on economic development as the pandemic has been gradually contained.

In cities like Hanoi, there should be a balanced combination of both measures and objectives, while for Ho Chi Minh City (HCMC) and those in the country’s southeast region, fighting the pandemic is the most significant matter.

Chinh, however, also noted within HCMC, there should be districts that are focusing on containing the pandemic and others on boosting economic growth.

Chinh expected the continuation of flexible management of fiscal and monetary policies to keep stable macro-economic conditions, while accelerating the development of high potential fields in the current climate, including e-commerce and digital transformation.

Giving a detailed look at the country’s economic performance in the six-month period, Minister of Planning and Investment Nguyen Chi Dung said in recent Covid-19 outbreaks, hiking prices of input materials and risks from global trade are putting pressure on the local economy.

Overview of the meeting.

“The economy, however, has progressed positively, thanks to drastic measures from the Government and support of the people and business community,” said Dung, referring to a GDP growth of 5.64% in the six-month period, a significant improvement from the 1.82% rate recorded in the same period last year.

According to Dung, other key economic indicators, including a 15.3% year-on-year increase in budget revenue collection, and food security staying intact despite Covid-19, have been strong results from the Government’s efforts of pursuing the twin goal.

The Ministry of Planning and Investment has drafted two growth scenarios for the second half of the year.

In the first scenario, to achieve the 6% growth target, Vietnam would need to hit a growth rate of 6.2% in the third quarter and 6.5% in the fourth.

However, to reach a 6.5% growth target, a 7% growth rate in the third quarter is needed, following a GDP growth of 7.5% in the fourth quarter.