Digitalization to serve driving force for economic growth
|THP big boss' key factors to tackle biggest challenges since the turn of the century|
|IMF: Global 2021 GDP growth may reach 5.5% thanks to COVID vaccine|
|Vietnam to grow 6.8 pct a year in the next five years|
In terms of his expectations in the export growth in the period of 2021-2025, Mr. Dinh Trong Thinh said that in 2021, in the context of implementing Free Trade Agreements such as the EU- Vietnam Free Trade Agreement (EVFTA), UK- Vietnam Free Trade Agreement (UKVFTA), Regional Comprehensive Economic Partnership (RCEP) ), etc, Vietnam's economy will have many favorable conditions to recover and the exports will certainly increase strongly. Up to 81% of enterprises in the manufacturing and processing industries took part in a survey of the General Statistics Office believe that their business situation in the first quarter of 2021 will be stable or better than the fourth quarter of 2020.
Looking at the structure of export markets, it indicates that the Vietnamese enterprises have made better use of opportunities from FTAs, the economic expert said. In 2020, exports to the EU market were estimated at 34.9 billion USD. Notably, after 5 months since EVFTA came into the effort, exports to the EU market reached about 15.38 billion USD, a year-on-year increase of about 1.6%.
The government has set a target for export growth of 5%/ year, however, the economic expert Dinh Trong Thinh expected the growth will be higher, from 7-10% / year.
|A container ship docks at Cat Lai Port in Ho Chi Minh City. Photo by Shutterstock/xuanhuongho.|
Talking about the challenges that the Vietnamese economy may encounter in the new period, Mr. Dinh Trong Thanh said that the complicated development of the Covid-19 in the region and the world has exerted impacts on many fields. Domestic agricultural production has faced natural disasters, droughts, etc. The exports have confronted the technical barriers as well as requirements on the environment and labor. The fraud in trade has also become a burning issue over the past time. In addition, there is trade pressure from the U.S - Vietnam's largest export market as the trade surplus between Vietnam and the U.S has continuously boosted in recent years. The economic structure has not been changed much. Currently, the private economy is gradually becoming an important field; nevertheless, it is still not commensurate.
|Workers make garment products for export at a factory in the northern province of Hung Yen. Photo by Reuters/Kham.|
According to the economic expert Dinh Trong Thinh, although the goals of growth in exports and GDP in the period 2021 - 2025 are completely suitable, to achieve these targets, the Government as well as the enterprise community need to take many measures.
The Government needs to continue promoting the digitization of the economy as well as the public services. It is necessary to consider digitalization as a driving force for growth in the time ahead. At the same time, to continue reforming administration and reduce administrative spending for businesses.
With import and export activities, the economic expert Dinh Trong Thinh said that Vietnam needs to maintain traditional markets, simultaneously expanding more new markets. The relevant authorities must concretize the commitments and benefits that Vietnam is enjoying in the FTAs so that businesses can grasp and take advantage of them, thereby bringing better efficiency.
Enterprises should note that maintaining the domestic market will be an important condition to adapt to every circumstance. In particular, to stimulate consumption, businesses also need to regularly transform models and product quality.
Director of Japan’s Vietnam Economic Research Institute (VERI) Hiroyuki Moribe said Vietnam’s great economic potential and achievements in containing COVID-19 are miracles.
Vietnam's labour sector has gained significant results and created new jobs for more than eight million workers in the five year period, which helped the ...
Online Russian newspaper Rusvesna, published an article on January 11 highlighting impressive Vietnamese achievements in terms of economic development, poverty reduction, and epidemic prevention, in ...