Total support programs provided by the Government to individuals and businesses affected by the Covid-19 pandemic this year are estimated at around US$10.45 billion, or 2.85% of the GDP.

Minister of Planning and Investment Nguyen Chi Dung. Source: MPI

Minister of Planning and Investment (MPI) Nguyen Chi Dung gave the remarks at a consultation conference on economic recovery in the 2022-2023 period on October 1.

While the figure remains low compared to neighboring countries, such as 11.4% of the GDP in Thailand, or 5.3% in Malaysia, Dung expected the Government to continue providing more support to the economy.

According to Dung, Vietnam has been facing severe economic consequences due to the pandemic, especially the fourth outbreak. This resulted in a contraction of 6.17% in GDP growth in the third quarter and a growth of 1.42% in the nine-month period.

“Disruption of supply chains are causing high production expenses, while economic resilience has been hit hard with both businesses and people struggling with the pandemic impacts,” Dung said.

The minister acknowledged the fact that most supporting policies provided by the authorities are still focusing on addressing the short-term financial concerns of businesses and people, or from the aggregate supply side of the economy.

“There is a lack of long-term and comprehensive solutions with sufficient resources to boost economic recovery along with restructuring efforts so that the economy is better equipped against future shocks,” Dung said.

International experience and recommendations from foreign experts suggested it is imperative for Vietnam to start working on a recovery program to avoid lagging behind as the world is entering the new normalcy period.

Dung stressed the necessity for Vietnam to soon accelerate the transition of the existing growth model towards a green economy, which can be achieved through the digital transformation process and active integration into global value chains.

“Vietnam should not stay outside the global trend in taking finance, trade, education or healthcare to online platforms,” Dung said.

For the time being, Vietnam has gradually shifted its Covid-19 response approach towards safe adaptation to the pandemic, which remains part of the ongoing efforts for both effective Covid-19 containment and boosting growth.