Home / Opinion
Public investment, exports to ensure Vietnam 2020 GDP growth at 2.5%: Expert
Ngoc Thuy 11:15, 2020/11/09
Domestic production and exports are key driving forces for Vietnam’s economy this year, state an expert.

Vietnam GDP growth in 2020 is set to reach 2.5%, thanks to strong growth in public investment and exports that offset declines in foreign investment and domestic consumption, according to economist Nguyen Xuan Thanh, a lecturer from Fulbright University of Vietnam. 

 Economist Nguyen Xuan Thanh. Photo: Quy Hoa/Nhip Cau Dau Tu.

Domestic production and exports are key driving forces for Vietnam’s economy this year, stated Mr. Thanh at an investment conference held by the Nhip Cau Dau Tu (BusinessReview) magazine last week.

From a regional perspective, countries that are relying on services for growth would continue to struggle amid the Covid-19 pandemic, while Vietnam with a focus on production is on the recovery track, he noted.

In September, the manufacturing and processing sector expanded by 4.6% month-on-month, resulting in an average growth rate of 3.8% in the first nine months this year. Strong growth was recorded in the sector of domestic production and basic necessities, including pharmacy, paper, chemical, construction material, while textile, footwear, automobile, food and beverage, among others, declined.

Sharing the same view, General Director of Deloitte Vietnam Pham Van Thinh said production would remain the driving force for growth and investment capital in 2021.

Although Vietnam’s economic expansion in the first nine months of 2020 recorded a 10-year low of 2.12%, the country is among a handful of economies that have delivered positive economic growth.

At present, both domestic and international institutions are expecting Vietnam’s economic growth at around 1.8 – 3% for this year, and then rebound to 6–8% next year.

FDI key for Vietnam GDP growth in 2021

In his own prediction, Mr. Thanh said Vietnam’s economy could expand by 6.9% in 2021, in which foreign direct investment (FDI) would play a pillar for such growth, adding many projects suspended in 2020 due to the pandemic would be resumed next year and serve as a boost to the economy.

Specifically, this includes merger and acquisition (M&A) projects, existing ones that are bound to resume, and a shift of the current investment capital.

Meanwhile, Mr. Thanh anticipated a positive outlook for manufacturing and processing with the enactment of the EU – Vietnam Free Trade Agreement (EVFTA) and recovery in exports to major markets in Asia, including South Korea, Japan and China, among others.

TAG: Vietnam covid-19 coronavirus nCoV pandemic GDP growth forecast domestic consumption exports trade FDI manufacturing
Other news
20:56, 2021/56/29
Businesses recovery vital for Vietnam’s economic prospects: Expert
The Government’s support program should not only be limited to “bailing out” the businesses but also laying the foundation for them to thrive.
13:16, 2021/16/26
Post-pandemic tourism: harnessing the value of cultural heritages
Fostering national tourism based on cultural values and available heritage is considered an effective solution for the sector to overcome challenges after the Covid-19 pandemic.
21:40, 2021/40/25
“Hanoi Midnight Sale” arouses potential of night-time economy
The Hanoi Department of Industry and Trade is coordinating with the Hanoi Institute of Socio-Economics and relevant agencies to work on plan of developing Hanoi’s night-time economy in the near future.
19:40, 2021/40/24
Culture should be a torch to light up nation’s way forward: Expert
It is vital that Vietnam build a “normative cultural value system” for its people to take as a reference and avoid deviant behaviors that harm the development of society and tarnish the national image.
09:10, 2021/10/14
The latest chapter in Vietnam’s valiant battle against the Delta variant
The good news is that most Vietnamese and expats are beginning to bask in the light at the end of tunnel.
15:55, 2021/55/30
Hanoi makes drastic changes to meet foreign investors’ demands: Expert
Hanoi has shown strong will in addressing concerns of foreign businesses and ensuring an ideal investment environment for them to commit to long-term operation.