Prime Minister Nguyen Xuan Phuc has pointed out five breakthroughs for Vietnam to achieve a GDP growth rate of over 5% this year, significantly higher than the International Monetary Fund (IMF)’s estimate of 2.7% after growth in the first quarter hit a decade low.

Overview of the meeting. Source: VGP.

These breakthroughs in FDI attraction, export, domestic consumption, public and private investment, are what the economy should focus on to boost growth and overcome difficulties during the current crisis, PM Phuc said at a monthly government meeting on May 5.

However, Phuc acknowledged the necessity to adjust certain socio-economic development criteria, given the growing global uncertainties and Vietnam’s deep integration into global economy.

Phuc requested relevant agencies to update growth scenarios and set up new GDP growth target, as well as new estimates for state budget collection, fiscal deficit and public debt for 2020.

Vietnam’s economy has felt the true impacts of the Covid-19 pandemic in April, particularly in the fields of manufacturing and processing, construction, transportation and tourism.

Notably, the aviation industry suffered a contraction of 98% month-on-month in the number of passengers, in which the number of foreign tourists coming to Vietnam plunged 94.2%.

According to Phuc, millions of people have lost their jobs or faced wage reduction as a result, which requires strong measures to address the issues in May and subsequent months.

However, the PM noted Vietnam should remain alert and put strong measures in place to prevent potential spread of the virus, including temporary ban on foreign entries and requirement for people to wear face masks in public places.

Vietnam continues to pursue dual target in the new situation, focusing on economic recovery and socio-economic development, Phuc said, adding the government would provide support for speedy operation of major industrial parks, businesses activities in large cities and boosting domestic tourism.