Vietnam sets economic growth target for 2021

On January 4, the Vietnamese government issued the “Resolution on Realizing the Main Tasks and Measures of the 2021 Social and Economic Development Plan and the State Budget.”

The “Resolution” made it clear that it will continue to achieve the dual goals of effectively preventing and controlling the new crown pneumonia epidemic and restoring social and economic development under the new normal.

The government’s economic goals for 2021 are:

GDP growth is about 6.5%,

The per capita GDP is about 3700 US dollars,

The annual growth rate of the consumer price index (CPI) is about 4%,

Total factor productivity (TFP) contributes about 45-47% to growth,

Social labor productivity increased by about 4.8%.

The Resolution emphasized,

—— Continue to appropriately control the entry of people to prevent the epidemic from entering from outside, and only consider reopening international commercial routes when conditions permit.

——Accelerate vaccine research and development and carry out international cooperation to provide solutions for people to obtain vaccines as soon as possible.

——The government continues to provide support in credit, finance, and tax reduction to help people and enterprises overcome difficulties and resume production after the epidemic.

——In addition to improving the legal system, relevant departments will strictly control the issuance of documents related to investment conditions, operations, administrative procedures, and special inspections to ensure that an open and favorable investment and business environment is created for enterprises.

-Promote the development of the financial, securities and insurance markets, and strengthen the management of the corporate bond market. The government requires the National Bank to cooperate with fiscal policy and other policies to carry out active and flexible adjustments to ensure system security, stabilize the macro economy, and provide support for the restoration of economic growth.

——The price management of electricity, refined oil and other important commodities and services will be open and transparent to ensure the balance of supply and demand of basic commodities and stabilize market prices.

-To diversify import and export markets and avoid excessive reliance on a single market.

-Effectively implement the signed free trade agreements and continue to negotiate new free trade agreements.

-Speeding up the economic restructuring of industries such as agriculture, transportation services, and credit institutions.

——Continue to shrink the operation of state-owned wholly-owned enterprises, promote the shareholding reform of state-owned capital and divestment of assets, and resolutely focus on dealing with loss-making and poor-efficient projects.