Policy and environmental conditions affect economic growth both in the long run and in the short run. In 2021, Ho Chi Minh City has many growth opportunities because the world economy is on a good recovery, so export orders of enterprises increase. At the same time, the trade conflicts of some big countries such as the US with China and the political crisis in Myanmar have pushed orders to shift to Vietnam quite a bit. Foreign investors also choose Ho Chi Minh City as an attractive destination to pour money into an investment. However, businesses could not produce, capital flow did not come as expected because of the impact of the prolonged epidemic. Therefore, the city authorities’ policies have switched from fighting the coronavirus pandemic to safe adaptation to the epidemic removing barriers for facilitation of the resource flow, then Ho Chi Minh City's economy will gradually recover quickly. For the economy to develop, state management must not obstruct the circulation of … [Read more...] about HCMC seeking new impetus for economic growth
Facts about chinas economic growth
COVID-19 costs Vietnamese economy $37bn in growth: official
The Vietnamese economy is estimated to suffer a US$37 billion loss in potential growth due to the COVID-19 pandemic by the end of this year, a senior official said on Sunday. Nguyen Thanh Phong, deputy head of the Party Central Committee’s Economic Commission, made the remarks at a forum discussing economic recovery measures held in Hanoi on Sunday. If it was not for the COVID-19 pandemic, the country’s economy could have grown around seven percent per year over the past two years, Phong said. However, it expanded a mere 2.91 percent in 2020 and is expected to expand just 2.5 percent in 2021. To weather the pandemic’s impact, it is necessary to have comprehensive recovery solutions with four growth drivers namely investment, exports, domestic consumption, and digital transformation, the official said. Vietnam posted a modest gross domestic product (GDP) growth rate of 1.42 percent in the first nine months of this year due to severe impacts of the COVID-19 pandemic, according … [Read more...] about COVID-19 costs Vietnamese economy $37bn in growth: official
Bonds, low lending interest rates key to economic recovery: experts
Vietnam needs to allocate 5.5-5.8 percent of its GDP, or VND445.76-666 trillion (US$19.46-29.07 billion) for economic recovery, according to the National Assembly Economic Committee. "Without a special support program and a fiscal and monetary stimulus package, Vietnam will fall behind and fail to meet its five-year economic growth targets," Can Van Luc, chief economist at lender BIDV, said at a forum Sunday. Truong Van Phuoc, former acting president of the National Financial Supervisory Commission, said one way to raise money is for the government to issue bonds. The central bank should lowers its policy rates by one percentage point since inflation is forecast to be under 3 percent this year, he said. The government’s target had been to keep it under 4 percent. The bank should also ease refinancing loan requirements to bring down banks’ interest rates, Phuoc added. Vo Tri Thanh, former head of the Central Institute for Economic Management, said easing restrictions on … [Read more...] about Bonds, low lending interest rates key to economic recovery: experts
Vietnam Wind Power 2021 event launched
A wind farm in Vietnam. (Photo: VNA) Hanoi (VNS/VNA) - Vietnam Wind Power 2021 , an annual event since 2018, was launched in Hanoi this week. The two-day event takes place on the sidelines of the Vietnam Energy and Technology Forum organised by the State Agency for Technology Innovation . The event was co-sponsored by the Norwegian Embassy and its Commercial Section - Innovation Norway, in collaboration with the Embassy of Denmark, Embassy of Germany, the German Agency for International Co-operation and the British Embassy. The event, believed to be the largest event of the wind power industry in the country, provides an opportunity for participants to share, connect and discuss new opportunities for the renewable energy industry in Vietnam. It also brings together Vietnam’s leading policy makers, wind industry leaders, investors and other key stakeholders locally and internationally. Four Norwegian companies -- Equinor, Mainstream Renewable Power, DNV and … [Read more...] about Vietnam Wind Power 2021 event launched
Bank relief to keep SMEs above water
The State Bank of Vietnam (SBV) and credit institutions have been actively releasing credit relief to remove difficulties for production and business and help control inflation, maintain macroeconomic stability, and support economic growth. The SBV has dropped interest rates three times in a row with a total reduction of 1.5-2 per cent per year for operating interest rate and 0.6-1 per cent for ceiling deposit interest rate for loan terms of less than six months and reduced the ceiling interest rate for short-term loans by 1.5 per cent for priority sectors (currently 4.5 per cent). This has created favourable conditions for credit institutions to access the SBV’s financial resources, reducing lending rates to support customers to restore production and business. As a result, the lending rate has been reduced by 1 per cent a year in 2020. The rate was on a downward trend in the first half of 2021 with a reduction of 0.55 per cent. The total reduction is about 1.55 per cent compared … [Read more...] about Bank relief to keep SMEs above water
Vietnam’s economy loses US$37 billion on Covid-19
The local economy should have had expanded by over 7% in the 2020-2021 period, but instead, it settled at 2.91% in 2020 and would achieve an estimated 2.5% this year. The Covid-19 pandemic in the past two years has caused losses of VND847 trillion (U$37 billion) for the local economy. Electronics production for export at Rang Dong Company. Photo: The Hanoi Times Vice-Chairman of the Party Central Committee’s Economic Commission Nguyen Thanh Phong revealed the figure at a business forum on December 5. According to Phong, without the pandemic, the economy would have expanded by 7% for the past two years. However, in fact, the country’s GDP expanded only 2.91% in 2020 and an estimated 2.5% this year. This resulted in losses of VND160 trillion ($7 billion) in 2020 and VND346 trillion (15.1 billion) in 2021, or around VND507 trillion ($22.2 billion) according to the purchasing power of 2010, and VND847 trillion ($37 billion) in current purchasing power. … [Read more...] about Vietnam’s economy loses US$37 billion on Covid-19
