The Vietnamese government targets the GDP growth to rebound to 6.5% in 2021, 0.5 percentage points higher than the goal set by the National Assembly at 6%.

Vietnam's leaders at the conference. Photo: Quang Hieu.

Prime Minister Nguyen Xuan Phuc gave the remarks at a national conference between the government and provinces/cities held on December 28.

“At this moment, it is safe to say that Vietnam has successfully attained the dual target of both containing the pandemic and boosting economic recovery,” stated Mr. Phuc.

In 2020, Vietnam’s GDP growth is estimated at 2.91% year-on-year, which is a 10-year low but remains a major success given the complicated Covid-19 situation globally, he added.

Such result is thanks to the strong efforts of the entire political system and the active participation of the public in the Covid-19 fight, the PM noted.

Prime Minister Nguyen Xuan Phuc. Photo: Quang Hieu.

Looking back at the past five years, Vietnam has generated around US$1.2 trillion worth of GDP and ensured a stable macro-economic environment for development. With an economic size of $340 billion, Vietnam is in the world’s top 40 largest economies and is now above a number of major economies in the region, Mr. Phuc said.

For the 2016-19 period, Vietnam is among the world’s top 10 fastest growing economies. In addition to economic development, Vietnam has created eight million new jobs during the period, while the GDP per capita is nearly $5,000.

“The benefit of economic growth can be seen not only in urban cities, but also in rural areas or remote areas,” Mr. Phuc suggested.

Another highlight of the economy is that the driving force for growth does not depend solely on a certain economic component, while the private sector has gradually emerged as a growth driver of the economy.

This year, agricultural exports reached US$41 billion and served as a foundation for economic recovery during the Covid-19 pandemic. Brand Finance, an independent brand valuation and strategy consultancy, said Vietnam has defied the global trend with brand value skyrocketing 29% year-on-year to $319 billion.

The stock market after its rock-bottom in March has been on the steady rise since and is now on the reach of its all-time peak at nearly 1,200 points.

Overview of the conference. Photo: Quang Hieu.

While the Covid-19 pandemic has disrupted global trade, Vietnam is on track to post an all-time high trade surplus of US$19.1 billion, which could help build up the country’s foreign exchange reserves to the $100-billion mark.

“In a difficult year for the global economy, Vietnam has emerged as a safe haven for foreign investors in the Southeast Asia,” stated Mr. Phuc, adding the country’s management of the monetary policy is not to seek unfair trade gains, but is purely based on the market mechanism.

The Prime Minister, however, pointed out challenges that Vietnam have to address, including the lack of sustainability in growth; low GDP per capita; private enterprises having to face many difficulties, especially those of small and medium sizes; quality of the education and healthcare services are not at the expectation.

Moreover, Vietnam is also one of the world’s most vulnerable countries when it comes to climate change issues.

The Prime Minister called for greater responsibilities of government agencies, business community and the people to realize the 2045 goal of making Vietnam a developed country with high income.